Over sufciently long timeperiods, net income equals cash inows minus cash outows, other than cash ows with owners.Demonstrate the accuracy of this statement in the following scenario: Two friends contributed$50,000 each to form a new business. The owners used the amounts contributed to purchase amachine for $100,000 cash. They estimated that the useful life of the machine was ve years andthe salvage value was $20,000. They rented out the machine to a customer for an annual rental of $25,000 a year for ve years. Annual cash operating costs for insurance, taxes, and other itemstotaled $6,000 annually. At the end of the fth year, the owners sold the equipment for $22,000,instead of the $20,000 salvage value initially estimated. ( Hint: Compute the total net income and thetotal cash ows other than cash ows with owners for the ve-year period as a whole. ) Please clearly explain the why. Thanks