The 2015 comparative statement of financial position and income statement

The 2015 comparative statement of financial position and income statement of A. Karev Medical Supplies follow:
A. Karev Medical Supplies Comparative Statement of Financial Position December 31, 2015 and 2014 INCREASE (DECREASE) 201

A. Karev Medical Supplies had no noncash investing and financing transactions during 2015. During the year, A. Karev Medical Supplies made no sales of land or equipment, no issuance of notes payable, no retirement of shares, and no treasury share transactions.
Requirements
1. Prepare the 2015 statement of cash flows, formatting operating activities by the indirect method.
2. How will what you learned in this problem help you evaluate an investment in A. Karev Medical Supplies?



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A. Karev Medical Supplies Comparative Statement of Financial Position December 31, 2015 and 2014 INCREASE (DECREASE) 2015 2014 Current Assets: $ 6,700 $ 5,300 $ 1,400 26,900 (1,600) 2,000 89,800 Cash and Cash Equivalents Accounts Receivable 25,300 91,800 Inventory Plant Assets: Land 89,000 60,000 29,000 Equipment, Net Total Assets 53,500 49,400 4,100 $231,400 $ 34,900 $266,300 Current Liabilities: $ 30,900 $ 35,400 $ (4,500) Accounts Payable Accrued Liabilities 30,600 28,600 2,000 Long-Term Liabilities: Notes Payable Shareholders' Equity: (25,000) 75,000 100,000 64,700 23,600 Common Shares 88,300 41,500 $266,300 Retained Earnings Total Liabilities and Shareholders' Equity 2,700 38,800 $231,400 $ 34,900 A. Karev Medical Supplies Income Statement Year Ended December 31, 2015 Revenues: $213,000 8,600 Sales Revenue Interest Revenue $221,600 Total Revenues Expenses: Cost of Goods Sold $ 70,600 27,800 4,000 10,500 Salaries Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense Total Expenses Net Income 11,600 29,100 153,600 $ 68,000