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.

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