Complete using reverse T-Accounts analysis method, use T-Accounts to support solutions

2-7B. Statement of Cash Flows (Direct Method) Refer to the data given for the Lowe Company in Problem P12-2B. (Appendix 12A) Required a. Compute the change in cash that occurred during the current year. b. Prepare a statement of cash flows using the direct method. LOWE COMPANY Balance Sheets Dec.31,CurrentYearDec.31,PreviousYear Assets Cash............ Inventory. Prepaid insurance. Plant assets . Accumulated depreciation Total assets. . Liabilities and Stockholders' Equity Accounts payable. Interest payable ... Income tax payable. Bonds payable Common stock. Retained earnings Treasury stock Total liabilities and stockholders' equity LOWE COMPANY 2-7B. Statement of Cash Flows (Direct Method) Refer to the data given for the Lowe Company in Problem P12-2B. (Appendix 12A) Required a. Compute the change in cash that occurred during the current year. b. Prepare a statement of cash flows using the direct method. LOWE COMPANY Balance Sheets Dec.31,CurrentYearDec.31,PreviousYear Assets Cash............ Inventory. Prepaid insurance. Plant assets . Accumulated depreciation Total assets. . Liabilities and Stockholders' Equity Accounts payable. Interest payable ... Income tax payable. Bonds payable Common stock. Retained earnings Treasury stock Total liabilities and stockholders' equity LOWE COMPANY