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), $7,000
2. Loss on sale of equipment, $3,000
3. Increase in Inventory, $15,000
4. Increase in Accounts Payable, $5,000
5. Depreciation for the year, $12,000
6. Decrease in Prepaid Expenses, $2,500
7. Increase in Accrued Liabilities, $4,000
Required:
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 for2012.

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ATM Corporation Partial Work Sheet-Cash Flows from Operations (Direct Method) For the Year Ended December 31, 2012 Adjustments Accrual Cash Basis Credits Debits Basis Net sales revenue S270,000 Expenses: Cost of goods sold. Depreciation. Loss on sale of equipment. Other (cash) expenses. Total expenses Net income (net cash flows from operations) $100,000 35,000 $135,000 $135,000