The Financial Statements of Lowz Company Appear Below

question 170

Essay

The financial statements of Lowz Company appear below: The following additional data were provided:
1. Dividends declared and paid were $35,000.
2. 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.
3. All depreciation expense is in the operating expenses.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.
Instructions
Prepare a statement of cash flows for Lowz Company using the direct method.

---

Definitions:

Animal Behavior

The study of how animals interact with each other and their environments, including instincts and learned behaviors.

Humanistic Psychology

A psychological perspective that emphasizes the study of the whole person and the uniqueness of individual experience and potential.

Component Parts

The individual elements or pieces that make up a larger system, device, or item, emphasizing the importance of each part to the functioning of the whole.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning, emphasizing observable behaviors over internal states.