Use the Brookman Medical Supplies data from P11-33A. The cash amounts for Interest Revenue, Salaries Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items.
In P11-33A. The 2012 comparative balance sheet and income statement of Brookman Medical Supplies follow:

Requirements
1. Prepare the 2012 statement of cash flows by the direct method.
2.How will what you learned in this problem help you evaluate an investment in Brookman MedicalSupplies?

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Brookman Medical Supplies Comparative Balance Sheet December 31, 2012 and 2011 INCREASE (DECREASE) 2012 2011 Current Assets Cash and Cash Equivalents Accounts Receivable Inventory S 6,700 S5,100 S 1,600 25,100 26,500(1.400) 91,500 89,400 2,100 Fixed Assets: Land Equipment, Net 89.900 60,600 29,300 4,200 S266,600 $230,800 S 35,800 53,400 Total Assets Current Liabilities: Accounts Payable S 30,600 S 35,800S (5,200) Accrued Liabilities Notes Payable Common Stock 30,90028,2002,700 76.000 100,000 (24,000) 88,700 64,10024,600 Long-Term Liabilities: Stockholders' Equity Retained Earnings 40,400 Total Liabilities and Stockholders' Equity 266,600 S230,800 S35,800 Brookman Medical Supplies Income Statement Year Ended December 31, 2012 Revenues: Sales Revenue Interest Revenue $210,000 8,400 Total Revenues $218,400 Expenses: Cost of Goods Sold Salaries Expense Depreciation Expense Other Operating Expenses Interest Expense Income Tax Expense S 70,600 27,800 4,900 10,800 11,700 29,000 Total Expenses Net Income S 63,600