Jane Bahr, a controller of Endicott & Thurston, prepared the following balance sheets at the end of 2011 and 2010:

Additional information:
1. Computing equipment with a cost of $250,000 and accumulated depreciation of $230,000 was sold for $5,000. New computing equipment was purchased for $376,000. 2. New office furniture was purchased at a cost of $35,000.
3. Depreciation expense for 2011 was $42,000.
4. Investments costing $20,000 were sold for cash at a loss of $2,000. Additional investments were purchased for $31,000 cash.
5. A $25,000 principal payment on the long-term note was made during 2011.
6. A portion of the cash needed to purchase computing equipment was secured by issuing bonds payable for $140,000 cash.
7. Net income was $70,000 and dividends were $38,000.

Required:
1. Using a spreadsheet, prepare a statement of cash flows for 2011. Assume Endicott & Thurston use the indirect method.
2. Discuss whether Endicott & Thurston appear to have matched the timing of inflows and outflows of cash.

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Endicott & Thurston Associates Balance Sheets December 31, 2011 and 2010 2011 2010 Current assels: 5 17,000 219,000 104,000 $340,000 40,000 2,000 Accounts receivable Prepaid rent 29.000 $109,000 51,000 Tołal current assets Property, plant, and equipment: Equipment, computing $ 488,000 400,000 888,000 $ 362,000 365,000 $727,000 173,000 $553,000 Nelt property, plant, and equipment 522,000 $682,000 Total assets LIABIUTIES AND EQUITY Current liabilities: Accounts payable Salaries payable $ 56,000 89,000 5 58,000 105,000 $145,000 $163,000 105,000 $268,000 Total current liabilities Longlerm liabilities: Notes payable, longtem Bonds payable 80,000 140,000 $365,000 Total liabilities Equily Common stock Retained earnings $225,000 92,000 $225,000 60,000 317,000 $682,000 Total equity 285,000 $553,000 Total liabilities and equity