Question 2 [30 points) Northstar Corp's balance sheet and income statement are as follows: Northstar Corp Northstar Corp Comparative Balance Sheet Information Income Statement December 31 For the Year Ended December 31, 2015 Assets 2015 2014 Sales $1,386,000 Cash $112,000 $75,000 Cost of goods sold 804,000 Accounts receivable 59,000 51,000 Gross profit 582,000 Merchandise inventory 402,000 352,000 Operating expenses. Equipment 224,000 198,000 Depreciation expense 36,000 Accumulated depreciation (103,000) (67,000) Other expenses 343,000 Total assets $694,000 $609,000 Total operating expenses 379,000 Liabilities and Equity Income from operations. 203,000 Accounts payable $49,000 $65,000 Income taxes 30,000 Income taxes payable 16,000 15,000 Net income $173,000 Share capital 520,000 480,000 Retained earnings 109,000 49,000 Total liabilities and equity _ $694,000 $609,000 Additional information regarding Northstar Corp.'s activities during 2015: a Equipment is purchased for $26,000 cash. b. 20,000 common shares are issued for cash at $2 per share. Prepare a statement of cash flows for 2015. Use the indirect method to report cash inflows and outflows for the operating activities section. (select one) Statement of Cash Flows (select one) X X X