bed 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 Balance Sheet at December 31 Previous Year Cash $ 6,300 $ 4.500 Accounts Receivable 1.000 1,950 Equipment 6,600 6,000 Accumulated Depreciation-Equipment (1,700) (1,350) Total Assets $12,200 $11, 100 Accounts Payable $ 500 $ 1,100 Salaries and Wages Payable 400 750 Note Payable (long-term) 1,500 500 Common Stock 6,000 6.000 Retained Earnings 3,800 2,750 Total Liabilities and Stockholders' Equity $12,200 $11,100 Income Statement Service Revenue 539,500 Salaries and Wages Expense 37,000 Depreciation Expense 350 Income Tax Expense 1,100 Net Income $ 1,050 Additional Data: Additional Data: a. Bought new hockey equipment for cash. $600, . Borrowed $1.000 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 (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcle Net Income to Net Cash Provided by Operating Activities Dent 26 Nevt >