Current Year	Previous Year
Balance Sheet at December 31
Cash	$ 6,300	$ 4,000
Accounts Receivable	900	1,750
Equipment	5,500	5,000
Accumulated DepreciationEquipment	(1,500)	(1,250)
Total Assets	$ 11,200	$ 9,500
Accounts Payable	$ 500	$ 1,000
Salaries and Wages Payable	500	750
Notes Payable (long-term)	1,700	500
Common Stock	5,000	5,000
Retained Earnings	3,500	2,250
Total Liabilities and Stockholders Equity	$ 11,200	$ 9,500
Income Statement
Service Revenue	$ 37,500
Salaries and Wages Expense	35,000
Depreciation Expense	250
Income Tax Expense	1,000
Net Income	$ 1,250

Additional Data:

1. Bought new hockey equipment for cash, $500.
2. Borrowed $1,200 cash from the bank during the year.
3. 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 Reconcile Net Income to Net Cash Provided by Operating Activities:
Changes in Current Assets and Current Liabilities
		0
Cash Flows from Investing Activities:
		0
Cash Flows from Financing Activities:
		0
		$0