The financial statements of Lowz Company appear below: Cash Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 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 LOWZ COMPANY Comparative Balance Sheet December 31 Assets 2014 $ 36,000 25,000 32,000 50,000 (21,000) $122,000 Liabilities and Stockholders' Equity $ 18,000 9,000 8,000 28,000 59,000 $122,000 LOWZ COMPANY Income Statement For the Year Ended December 31, 2014 2013 $ 23,000 34,000 15,000 78,000 (24,000) $126,000 $ 23,000 8,000 33,000 24,000 38,000 $126,000 $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.