Southwestern Rentals Inc. rents equipment to customers ranging from homeowners to large construction companies. The financial information shown below was gath- ered from its accounting records for 2000. Assume any increase or decrease in the balances from 1/1/00 to 12/31/00 resulted from either receiving or paying cash in the transaction. For example, during 2000 the balance on loans for land holdings in- creased $150,000 because the company received $150,000 in cash by taking out an additional loan on the land. Items Balance as of 1/1/00 Balance as of 12/31/00 100,000 $ 50,000 600,000 250,000 150,000 100,000 70,000 850,000 1,050,000 50,000 55,000 Cash Cash receipts from customers Loans on land holdings. Cash distributions to owners 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 $ 20,000 135,000 100,000 Required: 1. Prepare a statement of cash flows for Southwestern Rentals Inc. for the year ended December 31, 2000. 2. Interpretive Question: Does Southwestern Rentals Inc. appear to be in good shape from a cash flow standpoint? What other information would help you an- alyze the situation?