Use the New Design Ltd. data from Problem 17-3B.

Required
1. Prepare the 2014 cash flow statement by the indirect method. If your instructor also assigned Problem 17-3B, prepare only the operating activities section of the statement.
2. Evaluate the 2014 cash flow for this company.

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