solve step by step and explain

es. expenses. Problem 16-9A Preparing the statement of cash flows (indirect method) 105,6 31, 2016 CHECK FIGURE: Net cash inflows from financing activities $900 (thousand) Lock & Key Inc. began operations on January 1, 2016. Its post-closing trial balance at December 31, 2016 and 2017, is shown below along with some other information. Lock & Key Inc. Post-Closing Trial Balance (000s) 1 16 Lock & Key Inc. Income Statement For Year Ended December 31, 2017 (000s) 340 80 Revenues: Sales... 3,300 2,520 780 40 20 20 o Cost of goods sold Gross Profit..... Expenses: Other expenses Depreciation expense Total expenses Loss 660 December 31 2017 2016 $2,160 $1,260 2,100 1.440 2,040 2,280 3.720 3,960 1.440 1,380 1,440 1,080 240 360 1,680 1,800 3,084 2,040 2,136 2,280 Account Cash... Receivables.... Merchandise inventory. Property, plant, and equipment Accumulated depreciation Accounts payable. Accrued liabilities... Bonds payable Common shares Retained earnings.. 240 3,420 $ 120 1039 CHAPTER 16 Reporting and Analyzing Cash Flows A R Other information regarding Lock & Key Inc. and its activities during 2017: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. Equipment was sold for cash equal to its book value. Required Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2017. Analysis Component: Assume that the investing activities section of the statement of cash flows showed a net cash outflow of $14 thousand. What could this represent? Is a net cash outflow from investing ac- tivities necessarily favourable or unfavourable? Explain