Use the Ludwig Inc. financial statements and supplementary information given below to prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method. Additional Information: a. Purchased machinery for $31,000 cash. b. Sold the long-term investment on January 1, 2014 for $49,000. C. Sold machinery for $12,000 cash that had originally cost $68,000 and had $47,000 of accumulated depreciation. d. Issued $28,000 of bonds payable at face value. e. The short-term investment is a treasury bill that was purchased with maturity in 90 days. (select one) Statement of Cash Flows (select one) Cash flows from operating activities Adjust. to reconcile net income to cash provided by oper. act.: Ludwig Inc. Comparative Balance Sheet Information December 31 Assets 2014 2013 Cash 252.500 150,000 Short-term investments 137,000 125,000 Accounts receivable 126,400 75,000 Merchandise inventory 173.100 125.000 Long term investment 0 30,000 Machinery. 213.000 250,000 Accumulated depreciation (173,000) (185,000) Total assets 729,000 570,000 Cash flows from investing activities Cash flows from financing activities Liabilities and Equity Accounts payable Dividends payable Bonds payable Share capital Retained earnings Total liabilities and equity 104,000 16,000 28,000 341,000 240,000 63,000 46,000 0 341.000 120.000 570,000 Net increase (decrease) in cash Cash at beginning of year. Cash at end of year 729,000 Ludwig Inc. Ludwig Inc. Income Statement For Year Ended December 31, 2014 Sales 800,000 Cost Of Goods Sold 620,000 Depreciation expense 35,000 Other expenses 35,000 (690,000) Gain on sale of long-term investment 19,000 Loss on sale of machinery (9.000) Net income 120,000