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

Current Previous Year Year Balance Sheet at December 31 Cash $ 4,600 $5,450 Accounts Receivable 2,000 1,000 Prepaid Expenses 200 100 $ 6,800 $6,550 Salaries and Wages Payable $ 850 $2,100 Common Stock 2,200 1,500 Retained Earnings 3,750 2,950 $ 6,800 $6,550 Income Statement Service Revenue $44,950 Salaries and Wages Expense 40,000 Other Operating Expenses 4,150 Net Income $ 800 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 $700 cash in exchange for the company's stock. Required: 1. Prepare the statement of cash ows for the current year ended December 31 using the direct method. (Amounts to be deducted should be indicated by a minus sign.) Cash Flows from Operating Activities: Cash Collected from Customers Cash Paid for Salaries and Wages to Employees Cash Paid for Other Operating Expenses Net Cash Used in Operating Activities Cash Flows Used in Investing Activities: Cash Flows from Financing Activities: Cash Proceeds from Issuing Stock Net Cash Provided by Financing Activities Net Decrease in Cash during the Year Cash Balance, January 1 Cash Balance, December 31