PREPARATION OF A STATEMENT OF CASH FLOWS FROM BALANCE SHEET DATA. Jane Bahr, controller of Endicott & Thurston Associates, prepared the following balance sheets at the end of 19x4 and 19x3:

REQUIRED:
Prepare a statement of cash flows, using the indirect method to determine cash flows from operations.

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ASSETS ENDICOTT & THURSTON ASSOCIATES Balance Sheets As of December 31, 19x4 and 19x3 19x4 19x3 Current assets: Cash Accounts receivable Prepaid rent $ 2,000 78,000 29,000 $ 17,000 219,000 104,000 Total current assets 109,000 340,000 Property, plant, and equipment: Equipment, computing' $488,000 $362,000 Equipment, office furniture 400,000 365,000 Accumulated depreciation 888,000 (366,000) 727,000 (554,000) 522,000 173,000 51,000 40,000 Net property Long-term investments" Total assets LIABILITIES Current liabilities: Accounts payable Salaries payable Total current liabilities Long-term debt: Long-term note payable" Equipment mortgage payable" EQUITY Total liabilities Common stock Retained earnings Total equity Total liabilities and equity $682,000 $553,000 $ 56,000 89,000 $ 58,000 105,000 163,000 145,000 80,000 105,000 140,000 -0- 365,000 268,000 $225,000 92,000 $225,000 60,000 317,000 285,000 $682,000 $553,000