a) "The net income for a particular period does not necessarily reflect a firm's cash flows during that period". Do you agree? Discuss. [2 marks] b ) Explain the effects of the following transactions on the current ratio. (1) Equipment is purchased for RM 150,000 cash. (ii) The company increases its accounts payable to pay cash dividends of RM 600,000. (iii) Equipment of RM 300,000 is sold and the proceeds are used for renovation premises. [3 marks]