FA II: Assignment 2 - Prepare a Cashflow Statement Rosewood College O Assume the following selected income statement and balance sheet information for Larriet Inc.: Larriet Inc. Balance Sheet Information Larriet Inc. Income Statement Year Ended December 31, Year 5 (000's) (000's) December 31, Year 5 Year 4 Sales revenue $385 Cash $40 $22 Cost of goods sold $224 Accounts receivable 34 39 Merchandise inventory 150 146 Other operating expenses Depreciation expense 135 25 Prepaid expenses 3 2 Machinery 125 138 Loss on sale of machinery Net loss 3 (387) $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.