ACC - P8-30A - Karev Medical Supplies

Use the A. Karev Medical Supplies data from P8-30A. The cash amounts for Interest Revenue, Salary Expense, Interest Expense, and Income Tax Expense are the same as the accrual amounts for these items. 

Requirements
1. Prepare the 2008 statement of cash flows by the direct method.

2. How will what you learned in this problem help you evaluate an investment?