Southwestern Rentals, Inc., rents equipment to customers ranging from homeowners to large construction companies. The financial information shown below was gathered from its accounting records for 2003. Assume any increase or decrease in the balances from 1/1/03 to 12/31/03 resulted from either receiving or paying cash in the transaction. For example, during 2003 the balance on loans for land holdings increased $150,000 because the company received $150,000 in cash by taking out an additional loan on the land. Balance as of Balance as of Items 1/1/03 12/31/03 Calista. tctabaerd ia cahecsatsNiligacs SEIUe eee R Sree eee ceene $ 20,000 $ 50,000 Cash receipts from customers .............000. — 600,000 VoahsronmlancinoldimnGsaeucer si seer ieee nenene 100,000 250,000 CashecisthDOUtlOMSHOLOW CFS cmnmereapreeelt as inulin ene — 150,000 FOanko nib iii Quevers itstucrG steer sas es oro eae Rens 100,000 70,000 Investments ANeSOCUhIUeSrmaastess is. aeace sien eu iee an eeene me 850,000 1,050,000 Cash payments for other expenses.............. — 50,000 Cashipay iments On taXCSsmmretessikesiec ees) sn MCnEnanieeeee ~ 55,000 Cash payments for operating expenses ............ — 135,000 Cash payments for wages and salaries ........... — 100,000 1. Prepare a statement of cash flows for Southwestern Rentals, Inc., for the year ended December 31, 2003. 2. Interpretive Question: Does Southwestern Rentals, Inc., appear to be in good shape from a cash flow standpoint? What other information would help you analyze the situation?