Question 2 [20 points] The account balances for the noncash current assets and current liabilities of Ludwig Inc. are as follows: December 31 2015 2014 Accounts receivable 17,500 35,000 Merchandise inventory 44,000 66,500 Prepaid expenses 54,500 47,000 Totals 181,000 148,500 Accounts payable 57,500 38,000 Salaries payable 27,000 47,000 Totals 85,500 85,000 During 2015 Ludwig Inc. reported depreciation expense of $14,000. All purchases and sales are on account. Net loss for 2015 was $44,000. Prepare the operations section of the statement of cash flows using the indirect method. Ludwig Inc. Statement of Cash Flows For the Year Ended December 31, 2015 Cash flows from operating activities Net income Adjust. to reconcile net income to cash provided by oper. act.: Depreciation expense 85,500