Based on the given information from PA12-4 (pp.603-604) in your textbook, complete the

following Statement of Cash Flows using the Direct Method

Notes: -place negative amounts or balances in parentheses/brackets. Example: (100)

-when entering the amounts or balances, omit or do not include the dollar sign

and penny value or decimal point

-use comma to separate numbers/amounts/balances greater than 999.

Example: 1,850

Heads Up Company Statement of Cash Flows For the Year Ended, December 31 Cash flow from operating activities: Cash collected from customers Cash paid to employees Cash paid for other operating expenses Cash paid for income taxes Net Cash Flow provided by (used in) operating activities Cash flow from investing activities: Purchase of New Hockey Equipment Net Cash Flow provided by (used in) investing activities Cash flow from financing activities: Borrowed cash from the bank Net Cash Flow provided by (used in) financing activities Net Increase in Cash Cash, beginning of the year Cash, end of the year PA12-5 Computing Cash Flows from Operating Activities (Direct Method) Refer to the information in PA12-2. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. PA12-6 Preparing and Interpreting a Statement of Cash Flows (Direct Method) Refer to PA12-4. Required: Complete requirements 1 and 2 using the direct method. PA12-7 (Supplement 12A) Preparing and Interpreting a Statement of Cash Flows with Loss on Disposal (Indirect Method) Assume the same facts as PA12-4, except for the income statement and additional data item (a). The new income statement is shown below. Instead of item (a) from PA12-4, assume that the company bought new equipment for $1,800 cash and sold existing equipment for $500 cash. The equipment that was sold had cost $1,300 and had Accumulated Depreciation of $250 at the time of sale. Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method. 2. Use the statement of cash flows to evaluate the company's cash flows. Additional Data: a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term notes payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; salaries and wages, $20,000; taxes, $6,000; utilities, $6,800. f. Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. 2. Evaluate the statement of cash flows. PA12-4 PreparIng and Interpreting a Statement of Cash Flows (Indirect Method) L0 12-2, 12-3, 12-4, 12-5 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. Additional Data: a. Bought new hockey equipment for cash, $500. b. Borrowed $1,200 cash from the bank during the year. c. 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. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. 2. Use the statement of cash flows to evaluate the company's cash flows