Preparing a Statement of Cash Flows from Balance Sheets and Income Statements. Flight Training Corporation is a privately held firm that provides fighter pilot training under contracts with the U.S. Air Force and the U.S. Navy. The firm owns approximately 100 Lear jets that it equips with radar jammers and other sophisticated electronic devices to mimic enemy aircraft. The company recently experienced cash shortages to pay its bills. The owner and manager of Flight Training Corporation stated, ‘‘I was just dumbfounded. I never had an inkling that there was a problem with cash.’’ Exhibits 3.30 and 3.31 present comparative balance sheets and income statements for Years 2 through 4.