Dive In Company was started several years ago by two diving instructors. The companys comparative balance sheets and income statement are presented below.

Current Year

Previous Year

Balance Sheet at December 31

Cash

$

3,480

$

4,290

Accounts Receivable

1,200

600

Prepaid Expenses

120

60

$

4,800

$

4,950

Salaries and Wages Payable

$

450

$

1,300

Common Stock

1,400

1,100

Retained Earnings

2,950

2,550

$

4,800

$

4,950

Income Statement

Service Revenue

$

36,150

Salaries and Wages Expense

32,000

Other Operating Expenses

3,750

Net Income

$

400

Additional Data:

a.

Prepaid Expenses relate to rent paid in advance.

b.

Other Operating Expenses were paid in cash.

c.

An owner contributed capital by paying $300 cash in exchange for the companys stock.

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 by a minus sign.)

DIVE IN 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:
		0
Cash Flows Used in Investing Activities:
Cash Flows from Financing Activities:
		0
		$0