Prepare cash flow statement using the indirect method. Sale of Machinery: The machinery costing $20 thousand was sold for cash. There was a loss on sale of machinery of $3 thousand. This means the cash received was $17 thousand ($20 thousand cost - $3 thousand loss). The journal entry would be: Debit: Cash $17,000 Debit: Accumulated Depreciation $20,000 Debit: Loss on Sale of Machinery $3,000 Credit: Machinery $40,000 Purchase of Machinery: The machinery balance increased from $138 thousand to $150 thousand, indicating a purchase of $12 thousand. The journal entry would be: Debit: Machinery $12,000 Credit: Cash $12,000 Declaration of Dividends: The dividends payable increased from $5 thousand to $1 thousand, indicating a declaration of $4 thousand. The journal entry would be: Debit: Retained Earnings $4,000 Credit: Dividends Payable $4,000