y Assignment 4 (Question 1) - Lyryx Learning Inc - Google Chrome lifa1.lyryx.com/student-servlets/LabServlet?ccid=11218 Question 1 (30 points) Ludwig Inc.'s balance sheet and income statement are as follows: Ludwig Inc. Ludwig Inc. Comparative Balance Sheet Information Income Statement December 31 For the Year Ended December 31, 2015 2015 Assets 2014 $1,303,000 Sales Cash $113,000 $76,000 803,000 Cost of goods sold Accounts receivable 61,000 53,000 Gross profit 500,000 Merchandise inventory 398,000 352,000 Operating expenses: Equipment 219,000 198,000 Depreciation expense 36,000 Accumulated depreciation (103,000) (67,000) Other expenses 327,000 Total assets $688,000 $612,000 Total operating expenses 363,000 Liabilities and Equity Income from operations 137,000 Accounts payable $44,000 $60,000 Income taxes 29,000 Income taxes payable 22,000 20,000 Net income $108,000 Share capital 525,000 480,000 Retained earnings 97,000 52,000 Total liabilities and equity $688,000 $612,000 Additional information regarding Ludwig Inc.'s activities during 2015: a. Equipment is purchased for $21,000 cash. b. 15,000 common shares are issued for cash at $3 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 X X ttttt 7 7 7 7