Dive In Company was started several years ago by two diving instructors. The companys 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	2,800	1,400
Prepaid Rent	280	140
Total Assets	$ 8,800	$ 8,150
Salaries and Wages Payable	$ 1,250	$ 2,900
Common Stock	3,000	1,900
Retained Earnings	4,550	3,350
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:

1. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred.
2. An owner contributed capital by paying $1,100 cash in exchange for the companys 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.)