tom Epps and Mary jones are examine the following statement of ash flows for the Guthrie Company for the year ended Jan 31,2017. sources of cash Sources of cash as follows: from sales of merchandise $441,000 from sale of capital stock 487,000 from sale of investment (purchase below) 93,000 from depreciation 64,000 from issuance of note for truck 23,000 from interest on investments 7,000 total sources of cash $1,115,000. uses of cash as follows: for purchase of fixtures and equipment $383,000 for merchandise purchased for resale 299,000 for operating expenses(including depreciation) 186,000 for purchase of investment 87,000 for purchase of truck by issuance of note 23,000 for purchase of treasury stock 12,000 for interest on note payable 3,000 total uses of cash 993,000 net increase in cash $122,000 Tom claims that Guthrie's statement of cash flows is an excellent portrayal of a superb first year with cash increasing $122,000. Mary replies that it was not a superb first year. Rather, she says, the year was an operating failure, that the statement is presented incorrectly, and that $122,000 is not the actual increase in cash. The cash balance at the beginning of the year was $162,000. Answer the following. (a) using the data provided, prepare a statement of cash flows in proper form using the indirect method. the only noncash items in the income statement are deprecation and the gain from the sale of the investment. Adjustments to reconcile net income.