4 2 points: Shallow Waters Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement are presented below, along with additional information Balance Sheet at December 31 eBook Cash Accounts receivable. Prepaid expenses Equipment Mages payable Common stock and additional paid-in capital Pr 10 10 References Retained earnings Income Statement for Current Year Lessons revenue Nages expense Other expenses Net income Additional Data Current Year Prior Year $4,000 1,300 $4,500 800 100 250 700 $ 6,100 $5,550 650 $1,100 1,700 3,750 1,400 3,050 $6,100 $5,550 $34,550 30,200 3,650 $ 700 a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c. Purchased equipment for $700 cash at the end of the current year to be used starting in following year. d. An owner contributed capital by paying $300 cash in exchange for the company's stock. Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. (List cash outflows as negative amounts.)