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Heads Up Company was started several years ago by two hockey instructors The company's comparative balance sheets and income statement follow along with additional information current Year Previous Meani Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Labelt eles and Stockholders! tolty Income Statement Service Revenue Salaries and Wages Expanse Deurrelation Expensa Income Tax Expense Het Income $ 6,18 890 5.390 (1.480) 110, $ 710 $10 1,5ee 4.See 26 $14,90 $ 4,160 1,730 4.980 (1 240) $9,550 $ 1,20 750 50 4.ee 2e0 1.9,550 139,700 37.208 346 1.200 1 1,50 Additional Data: Bought new bockey equipment for cash, $490 b Borrowed $1,100 cash from the bank during the year Accounts Payable includes only purchases of services made on credit for operating purposes Because there are no liability accounts relating to income tax assume that this expense was fully paid in cash !!! Next > 5 Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the direct method (Am should be indicated with a minus sign.) 16 66 points Answer is not complete. HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Cash Collected from Customers $ Cash Paid for salaries and Wages to Employees Cash Paid for Other Operating Expenses Cash Paid for Income Tax DI 40,540 37 440 > 1,200 > 79.180 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Payments to Purchase Equipment 490 490 Net Cash Used in Investing Activities Cash Flows from Financing Activities: Cash Proceeds from Bank Loan (1.100) Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 (1.100) 2,020 4,160 6,180