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2013 The financial statements of Lowz Company appear below: LOWZ COMPANY Comparative Balance Sheet December 31 2014 Assets Cash $ 36,000 Accounts receivable 25,000 Merchandise inventory 32,000 Property, plant, and equipment 50.000 Accumulated depreciation (21,000) Total $122.000 $ 23,000 34,000 15,000 78,000 (24.000) $126.000 Liabilities and Stockholders' Equity $ 18,000 9,000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 8,000 28,000 59.000 $122.000 $ 23,000 8,000 33,000 24,000 38.000 $126.000 LOWZ COMPANY Income Statement For the Year Ended December 31, 2014 Sales Cost of goods sold Gross profit Depreciation Expense Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $400,000 270,000 130,000 8,000 37,000 85,000 5,000 80,000 24.000 $ 56.000 The following additional data were provided: a. During the year, equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale. Instructions: Prepare a statement of cash flows for Lowz Company using the direct method