Estimated Cash Flow. Yoder Mills, Inc. is expected to make a payment of \(\$ 500,000\) on equipment notes payable by December 31, 1999. Sales volume is down, and it is difficult to collect accounts receivable. The cash balance on January 1,1999 , was \(\$ 130,000\) and is at an absolute minimum to meet operating obligations.

The controller estimated net income for 1999 to be only \(\$ 18,000\). Depreciation of \(\$ 270,000\) was deducted in estimating net income. Other estimates are:
1. Accounts receivable are to be reduced by \(\$ 20,000\).
2. Inventories are to be reduced by \(\$ 30,000\).
3. Accounts payable will increase by \(\$ 10,000\).
4. Equipment with a net book value of \(\$ 12,000\) will be sold for that amount.
\section*{Required:}
From the information given, does it appear that the debt payment can be made while holding a cash balance of no less than \(\$ 130,000\) ? Prepare an estimated statement of cash flows to support your position.