Use the Sudan Medical Supply Corp. data from P12- 62A. The 2014 and 2013 comparative balance sheets and 2014 income statement of Sudan Medical Supply Corp. Follow:

Requirements
1. Prepare the 2014 statement of cash flows by using the direct method.
2. How will what you learned in this problem help you evaluate aninvestment?

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A1 Sudan Medical Supply Corp. Comparative Balance Sheets December 31, 2014 Increase 2013 Decrase) 4 Current assets: 5 Cash and cash equivalents 6 Accounts receivable 7 Inventories 8 Prepaid expenses 9 Plant assets: 10 Land 11 Equipment, net 12 Total assets 13 Current liabilities: 14 Accounts payable 15 Salary payable 16 Other accrued liabilities 17 Long-term liabilities: 18 Notes payable 19 Stockholders' equity: 20 Common stock, no-par 2 Retained earnings 22 Total liabilities and stockholders' equity 23 56,200 21,900 34,300 16,700 2,200 61,700 45,00016 54,400 2,4005,000 (2,6001 67,200 39,80027400 49.600 $ 35,500 26,9008,600 600 19,000 23,000 18,000 16,100 23,700 49,000 116,000 30,000 93,000 26,800 Al Sudan Medical Supply Corp. Income Statement Year Ended December 31, 2014 2 Revenues: 3 Sales revenue 4 Expenses: 5 Cost of goods sold 6 Salary expense 7 Depreciation expense 8 Other operating expense 9Interest expense 10 Income tax expense 11 Total expenses 12 Net income 13 581,000 249,500 95,700 16,100 9,000 24,100 98,100