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 $ $5,720$ $ $6,610$

Accounts Receivable $2,8001,400$

Prepaid Rent $280140$

Total Assets $ $8,800$ $ $8,150$

Salaries and Wages Payable $ $1,250$ $ $2,900$

Common Stock $3,0001,900$

Retained Earnings $4,5503,350$

Total Liabilities and Stockholders$$ Equity $ $8,800$ $ $8,150$

Income Statement

Service Revenue $ $53,750$

Salaries and Wages Expense $48,000$

Rent and Office Expenses $4,550$

Net Income $ $1,200$

Additional Data:

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

An owner contributed capital by paying $$1,100$ cash in exchange for the company$$s stock.

Required:

$1.$ Prepare the statement of cash flows for the current year ended December $31$ using the indirect 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.

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 $$1,100$ cash in exchange for the company's stock.

Required:

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.$)$