Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and income

statement, as well as additional information, are presented below.

Additional Data:

a$.$ Rent is paid in advance each month, and Office Expenses are paid in cash as incurred.

b$.$ An owner contributed capital by paying $$250$ cash in exchange for the company's stock.

Required:

Prepare the statement of cash flows for the current year ended December $31$ using the direct method. $($Amounts to be deducted

should be indicated by a minus sign.$)$Dive In Company was started several years ago by two diving instructors. The company$$s comparative balance sheets and income statement, as well as additional information, are presented below.

Current Year Previous Year

Balance Sheet at December $31$

Cash $ $3,340$ $ $4,145$

Accounts Receivable $1,100550$

Prepaid Rent $11055$

Total Assets $ $4,550$ $ $4,750$

Salaries and Wages Payable $ $400$ $ $1,200$

Common Stock $1,3001,050$

Retained Earnings $2,8502,500$

Total Liabilities and Stockholders$$ Equity $ $4,550$ $ $4,750$

Income Statement

Service Revenue $ $35,050$

Salaries and Wages Expense $31,000$

Rent and Office Expenses $3,700$

Net Income $ $350$

Additional Data:

Rent is paid in advance each month, and Office Expenses are paid in cash as incurred.

An owner contributed capital by paying $$250$ cash in exchange for the company$$s stock.

Required:

$1.$ Prepare the statement of cash flows for the current year ended December $31$ using the direct method. $($Amounts to be deducted should be indicated by a minus sign.$)$