The 2014 comparative income statement and balance sheet of New Design Ltd. follow:

New Design Ltd. had no noncash financing and investing transactions during 2014. During the year, there were no sales of land or plant and equipment, and no issuances of notes payable.
Required
1. Prepare the 2014 cash flow statement, formatting operating activities by the direct method.
2. Evaluate the 2014 cash flow for this company.

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NEW DESIGN LTD Income Statement For the Year Ended December 31, 2014 Revenues Sales revenue Interest revenue $257,000 13,600 270,600 Total revenues Expenses: Cost of goods sold Salaries expense Amortization expense Other operating expenses Interest expense Income tax expense $76,600 27,800 4,000 10,500 16,600 27,800 Total expenses 163,300 $107 300 Net income NEW DESIGN LTD Balance Sheet December 31, 2014 and 2013 2014 2013 Current assets Cash and cash equivalents Accounts receivable Interest receivable Inventories Prepaid expenses $ 7,200 31,600 1,900 33,600 $ 6,300 26,900 66,500 103,000 $246,300 57,200 1,900 49,400 54,000 $196 400 Plant and equipment, net Total assets Current liabilities $ 28,800 4,900 6,600 16,000 7,700 Accounts pavable $ 31,400 Interest payable 3,100 13,700 8,900 Other accrued liabilities Income tax payable Long-term liabilities Notes payable Shareholders' equity Common shares Retained earnings 75,000 95,000 68,300 41,500 $246,300 34,700 2,700 $196 400 Total liabilities and shareholders' equity