The 2015 comparative statement of financial position and income statement of Goldman Medical Supplies follow:

Goldman Medical Supplies had no noncash investing and financing transactions during 2015. During the year, Goldman 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 2015 statement of cash flows, formatting operating activities by the indirect method.
2. How will what you learned in this problem help you evaluate an investment in Goldman Medical Supplies?

Transcribed Image Text:

Goldman Medical Supplies Comparative Statement of Financial Position December 31, 2015 and 2014 INCREASE (DECREASE) 2015 2014 Current Assets: Cash and Cash Equivalents $ 6,700 $ 5,400 $ 1,300 (1,600) 1,900 Accounts Receivable 25,200 26,800 89,600 Inventory Plant Assets: 91,500 Land 89,200 53,200 $265,800 28,900 4,000 $231,300 $ 34,500 60,300 Equipment, Net Total Assets 49,200 Current Liabilities: $ 30,200 $ 35,400 $ (5,200) 30,400 Accounts Payable 28,100 Accrued Liabilities 2,300 Long-Term Liabilities: Notes Payable Shareholders' Equity: 100,000 72,000 (28,000) 64,700 3,100 $265,800 $231,300 S 34,500 Common Shares 88,900 24,200 Retained Earnings Total Liabilities and Shareholders' Equity 44,300 41,200 Goldman Medical Supplies Income Statement Year Ended December 31, 2015 Revenues: Sales Revenue $217,000 Interest Revenue 8,500 225,500 Total Revenues Expenses: Cost of Goods Sold $ 70,700 Salaries Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses 27,400 4,400 10,400 11,100 29,700 153,700 S 71,800 Net Income