Max & Ellie Construction, Inc., builds homes and offices and sells them to customers. The financial information shown below was gathered from its accounting records for 2012. Assume any increase or decrease in the balances from 1/1/12 to 12/31/12 resulted from either receiving or paying cash in the transaction. For example, during 2012 the balance on loans for land holdings increased $55,000 because the company received $55,000 in cash by taking out an additional loan on the land.

Required:
1. Prepare a statement of cash flows for Max & Ellie Construction, Inc., for the year ended December 31, 2012.
2. Interpretive Question: Does Max & Ellie Construction, Inc., appear to be in good shape from a cash flow standpoint? What other information would help you analyze thesituation?

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Balance as of Balance as of 12/31/12 items S264,000 910,000 275,000 95,000 75,000 720,000 44,000 57,000 270,000 195,000 S220,000 220,000 175,000 Cash Cash receipts from customers.... Loans on land holdings Loan on building Investments in securities Cash payments for other expenses Cash payments for taxes.. Cash payments for operating expenses Cash payments for wages and salaries 560,000