The 2014 and 2013 comparative balance sheets and 2014 income statement of Sudan Medical Supply Corp. Follow:

Sudan Medical Supply had no noncash investing and financing transactions during 2014. During the year, there were no sales of land or equipment, no payment of notes payable, no retirements of stock, and no treasury stock transactions.

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

Transcribed Image Text:

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