The 2014 comparative balance sheet and income statement of A. Karev Medical Supplies follow:

A. Karev Medical Supplies had no noncash investing and financing transactions during 2014. During the year, A. Karev Medical Supplies made no sales of land or equipment, no issuance of notes payable, no retirement of shares, and no treasury share transactions.
Requirements
1. Prepare the 2014 cash flow statement, formatting operating activities by the indirect method.
2. How will what you learned in this problem help you evaluate an investment in A. Karev Medical Supplies?

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A. Karev Medical Supplies Comparative Balance Sheet December 31, 2014 and 2013 INCREASE 2013 (DECREASE 2014 Current Assets: Cash and Cash Equivalents Accounts Receivable Inventory 6,700 5,300 S1,400 25,30026,9001,600) 91,800 89,800 2,000 Plant Assets 89, Land Equipment, Net ,000 60,000 29,000 4,100 $266,300 $231,400 $ 34,900 53,500 49,400 Total Assets Current Liabilities Accounts Payable Accrued Liabilities Long-Term Liabilities $ 30,900 35,400 (4,500) 2,000 30,600 28,600 Notes Payable 75,000 00,000(25,000) Shareholders' Equity: Common Shares Retained Earnings 64,700 23,600 2,70038,800 $266,300 $231,400 34,900 88,300 41,500 Total Liabilities and Shareholders' Equity A. Karev Medical Supplies Income Statement Year Ended December 31, 2014 Revenues Sales Revenue Interest Revenue $213,000 8,600 Total Revenues $221,600 Expenses 70,600 27,800 Cost of Goods Sold Salary Expense Depreciation Expense Other Operating Expenses Interest Expense Income lax Expense 10,500 11,600 29,100 Total Expenses Net Income 153,600 68,000