The following partially completed work sheet is provided for ATM Corporation, which uses the direct method in computing net cash flows from operations:

Key:
1. Decrease in Accounts Receivable (net), $\$ 4,500$.
2. Loss on sale of equipment, $\$ 1,500$.
3. Increase in Inventory, $\$ 10,000$.
4. Increase in Accounts Payable, $\$ 3,000$.
5. Depreciation for the year, $\$ 8,000$.
6. Decrease in Prepaid Expenses, $\$ 1,000$.
7. Increase in Accrued Liabilities, $\$ 2,500$.
Required:
Income Statement from Cash Flow Data Required:
Statement of Cash Flows (Indirect Method)
Complete the worksheet with the key items above and compute the net income (loss) to be reported by ATM Corporation on its income statement for 2000 .

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ATM Corporation Partial Work Sheet-Cash Flows from Operations (Direct Method) For the Year Ended December 31, 2000 Accrual Basis Adjustments Cash Debits Credits Basis 150,000 Net sales revenue Expenses: Cost of goods sold. Depreciation.... Loss on sale of equipment 75,000 0 0 Other (cash) expenses.. 26,000 Total expenses.... 101,000 Net income (net cash flows from operations).. 49,000