You are a loan officer for First Benevolent Bank. You have an uneasy feeling as you examine a loan application from Daring Corporation. The application included the following financial statements.

DARING CORPORATIONIncome StatementFor the Year Ended December 31, 2021Sales revenue$100,000Cost of goods sold(50,000)Depreciation expense(5,000)Remaining expenses(25,000)Net income$20,000

DARING CORPORATIONBalance SheetDecember 31, 2021Cash$5,000Accounts receivable25,000Inventory20,000Operational assets55,000Accumulated depreciation(5,000)Total$100,000Accounts payable$10,000Interest payable5,000Note payable45,000Common stock20,000Retained earnings20,000Total$100,000

It is not Daring's profitability that worries you. The income statement submitted with the application shows net income of $20,000 in Daring's first year of operations. By referring to the balance sheet, you see that this net income represents a 20% rate of return on assets of $100,000. Your concern stems from the recollection that the note payable reported on Daring's balance sheet is a two-year loan you approved earlier in the year.

You also recall another promising new company that, just last year, defaulted on another of your bank's loans when it failed due to its inability to generate sufficient cash flows to meet its obligations.

Required:

Prepar a statement of cash flows for the Daring Corporation from the information available in the loan application.(Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)