The financial statements of Lowz Company appear below: LOWZ COMPANY Comparative Balance Sheet December 31 2013 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 Assets Liabilities and Stockholders' Equity LOWZ COMPANY Income Statement For the Year Ended December 31, 2014 Depreciation Expense Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income I 2014 $36,000 25,000 32,000 50,000 (21,000) $122.000 $ 18,000 9,000 8,000 28,000 59,000 $122.000 The following additional data were provided: 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. $ 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 Instructions: Prepare a statement of cash flows for Lowz Company using the indirect method.

The financial statements of Lowz Company appear below: LOWZ COMPANY Comparative Balance Sheet December 31 2014 2013 Cash Assets Accounts receivable Merchandise inventory Property, plant, and equipment Accumulated depreciation Total \begin{tabular}{rr} $36,000 & $23,000 \\ 25,000 & 34,000 \\ 32,000 & 15,000 \\ 50,000 & 78,000 \\ (21,000) & (24,000) \\ \hline$122,000 & $126,000 \\ \hline \end{tabular} Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained eamings Total \begin{tabular}{rr} $18,000 & $23,000 \\ 9,000 & 8,000 \\ 8,000 & 33,000 \\ 28,000 & 24,000 \\ 59,000 & 38,000 \\ \hline$122,000 & $126,000 \\ \hline \end{tabular} 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 \begin{tabular}{r} $400,000 \\ 270,000 \\ \hline 130,000 \\ 8,000 \\ 37,000 \\ \hline 85,000 \\ 5,000 \\ \hline 80,000 \\ 24,000 \\ \hline$56,000 \end{tabular} The following additional data were provided - 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 indirect method