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Assume the following selected income statement and balance sheet information for Larriet Inc.:

$\backslash$table$[[\backslash$table$[[$Larriet Inc.$],[$Balance Sheet Information $(000\text{'}$s$)]],\backslash$table$[[$Larriet Inc.$],[$Income Statement$],[$Year Ended December $31,$ Year $5(000\text{'}$s$)]]],[$December $31,],[,$Year $5,$Year $4,$Sales revenue,,$$385],[$Cash$,$$$40,$$$22,$Cost of goods sold,$$224,],[$Accounts receivable,$34,39,$Other operating expenses,$135,],[$Merchandise inventory,$150,146,$Depreciation expense,$25,],[$Prepaid expenses,$3,2,$Loss on sale of machinery,$3,(387)],[$Machinery$,125,138,$Net loss,,$$2],[$Accumulated depreciation,$55,42,,,],[$Accounts payable,$29,31,,,],[$Dividends payable,$1,5,,,],[$Bonds payable,$15,38,,,],[$Common shares,$208,150,,,],[$Retained earnings,$44,81,,,]]$

Additional information:

a$.$ Machinery costing $$20$ thousand was sold for cash.

b$.$ Machinery was purchased for cash.

c$.$ The change in retained earnings was caused by the net loss and the declaration of dividends.

Q$.$ Construct a cashflow statement from the above information using the indirect method.

Analyze the following transactions. Indicate which accounts are affected and whether they will increase or decrease. Transaction $($a$)$ is completed as an example. $(10$ Marks$)$

a$.$ Owner investment of cash into the business.

b$.$ Payment of a utility bill.

c$.$ Purchase of inventory for cash.

d$.$ Payment of an accounts payable.

e$.$ Performing a service on account.

f$.$ Collecting cash from a customer as payment on his account.

$\backslash$table$[[$Transaction$,$Accounts,Increase,Decrease$],[$a$.,$Cash,$x,],[,\backslash$table$[[$Common$],[$shares$]],x,],[$b$.,,,],[,,,],[$c$.,,,],[,,,],[$d$.,,,],[,,,],[$e$.,,,],[,,,],[$f$.,,,],[,,,]]$

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