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 ear Balance Sheet at December 31 Cash Accounts Receivable Prepaid Expenses S 5,720 $6,610 140 $ 8,800 $8,150 Salaries and Wages Payable 1,250 $2,900 2,8001,400 280 Common Stock Retained Earnings 3,000 1,900 4,550 3,350 8,800 $8,150 Income Statement $53,750 Service Revenue Salaries and Wages Expense Other Operating Expenses 48,000 4,550 Net Income 1,200 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 $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 direct method (Amounts to be deducted should be indicated by a minus sign.)