Jane Bahr, a controller of Endicott & Thurston, prepared the following balance sheets at the end of 2019 and 2018:
Endicott & Thurston Associates
Balance Sheets
December 31, 2019 and 2018

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 2019 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 2019.
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 2019. 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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2019 2018 ASSETS Current assets: $ 2,000 78,000 29,000 $109,000 51,000 $ 17,000 219,000 104,000 $340,000 40,000 Cash Accounts receivable Prepaid rent Total current assets Long-term investments Property, plant, and equipment: Equipment, computing Fumiture $ 488,000 400,000 $ 888,000 (366,000) $ 362,000 365,000 $ 727,000 (554,000) Accumulated depreciation Net property, plant, and equipment Total assets 173,000 $553,000 522,000 $682,000 LIABILITIES AND EQUITY Current liabilities: Accounts payable Salaries payable $ 56,000 89,000 $ 58,000 105,000 $145,000 $163,000 Total current liabilities Long-term liabilities: Notes payable Bonds payable Total liabilities 80,000 140,000 $365,000 105,000 $268,000 Equity: Common stock $225,000 92,000 $225,000 60,000 Retained eamings Total equity Total liabilities and equity 317,000 $682,000 285,000 $553,000