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

Accrual

Adjustments

Cash

Net sales revenue. .

Basis

Debits

Credits

Basis

Expenses:

$150,000

Cost of goods sold.

$ 75,000

Depreciation.

0

Loss on sale of equipment

0

Other (cash) expenses.

26,000

Total expenses

$101,000

Net income (net cash flows from operations)

$ 49,000

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 reported by ATM Corporation on its income statement for 2003.