Q2 (Cash flows) -20 Marks a) Determine the net cash flows for periods 1 through 3 for a firm with the following transactions: $1,000 spent in period 1 and $2,000 spent in period 2 to produce goods to be sold in the following periods, sales of $2,000 in period 2 and $4,000 in period 3, one- half of all sales are in cash with the other half collected in the following period. Use the following answer format Period 1 2 Sales Change in accounts receivable Gheter 1 2 2 Period Sales Change in accounts receivable Cost of goods sold Change in inventories Net cash flow b) What are the overall changes in working capital resulting from the following changes? $300 increase in inventories, $150 increase in accounts payable, $120 decrease in accounts receivable, $60 decrease in other current assets, $150 decrease in other current liabilities Use the following answer format Increase in inventory Decrease in accounts receivable Decrease in other current assets Increase in accounts payable Decrease in other current liabilities Net changes in working capital