Dalance sheet at vecember 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 Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $ 6,040 870 5,170 (1,440) $10,640 $ 630 530 1,500 4,700 3,280 $10,640 $40,100 37,600 220 1,100 $ 1,180 Additional Data: a. Bought new hockey equipment for cash, $470. b. 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 Current Year Previous Year $ 6,040 870 5,170 (1,440) $10,640 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 Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $ 630 530 1,500 4,700 3,280 $10,640 $ 3,989 1,690 4,700 (1,220) $ 9,150 $ 1,100 750 500 4,700 2,100 $ 9,150 $40,100 37,600 220 1,100 $ 1,180