Digiread Technologies Ltd. (DTL) is a privately held distributor of e-readers and tablets. The Calgary-based company is well established and is currently managed by its founder, Erin Jacobs. The company’s financial statements are presented below, together with some additional information.

Required
DTL’s management shareholders have asked you to prepare the statement of cash flows for DTL using either the direct or indirect method for determining cash flows from operating activities. Prepare the statement for them.

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Sales revenue Cost of goods sold Gross profit Wages expense DIGIREAD TECHNOLOGIES LTD. Statement of Income For the year ended December 31, 2024 Depreciation expense Interest expense Income tax expense Gain on sale of equipment Net income $50,500,000 34,400,000 16,100,000 4,000,000 1,200,000 1,900,000 1,600,000 (600,000) $ 8,000,000