Use the Goldman Medical Supplies data from P11-3B. The cash amounts for Interest Revenue, Salary Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items.

In P11-3B

Requirements
1. Prepare the 2014 cash flow statement by the direct method.
2. How will what you learned in this problem help you evaluate an investment in Goldman Medical Supplies?

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Goldman 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 5,400 1,300 25,20026,800 (1,600) 91,500 89,600 1,900 Plant Assets Land Equipment, Net 60,300 28,900 4,000 $265,800 $231,300 34,500 89,200 53,200 49,200 Total Assets Current Liabilities $ 30,200 35,400 $(5,200) 2,300 Accounts Payable 30,400 28,100 Accrued Liabilities Notes Payable Common Shares Long-Term Liabilities: 72,000 00,000 (28,000) Shareholders' Equity: 64,700 24,200 3,100 41,200 $265,800 $231.300 $34.500 88,900 44,300 Retained Earnings Total Liabilities and Shareholders' Equity Goldman Medical Supplies Income Statement Year Ended December 31, 2014 Revenues Sales Revenue Interest Revenue $217,000 8.500 Total Revenues 225,500 Expenses Cost of Goods Sold Salary Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense 70,700 27,400 4,400 10,400 11,100 29,700 153,700 71,800 Total Expenses Net Income