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

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ATM Corporation Partial Work Sheet-Cash Flows from Operations (Direct Method) For the Year Ended December 31, 2003 Net sales revenue Expenses: Cost of goods sold Depreciation. Loss on sale of equipment Other (cash) expenses. Total expenses Net income (net cash flows from operations). Adjustments Accrual Basis Cash Debits Credits Basis $150,000 $ 75,000 0 0 26,000 $101,000 $ 49,000 Required: 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. Complete the work sheet with the key items above and compute the net income (loss) to be re- ported by ATM Corporation on its income statement for 2003.