DEF corporation makes $100$ machines at a cost of $$100$ in

year one. In year $2,$ they sell $50$ machines on credit for $$125$ and $50$

machines are in cash for $110$$$.$ In year $3,$ the receivable is paid.

For the answers below, clearly show your work!

a$)$ For each year, write all of the formal income statements

B$)$ For each year, write all of the cash flows. This requires calculating the

cash inflows, cash outflows, and the net cash flow, which is inflows minus outflows

c$)$ Demonstrate that one can reconcile the results of question a$)$ and question b$)$ using Statement of Cash Flow. To clarify, demonstrate that by using the Statement of Cash Flows, we can start with the income statements in question a$)$ and obtain the cash flow statements in question b$)$