Heads Up Company was started several years ago by two hockey instructors. The with balance sheets and income statement follow, elong wth additional information. Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Equipment 6,560 4,520 1,910 6,380 5,800 980 Accumulated Depreciation(1660) (1,330) $12,260 $10,900 $ 620 1,200 Equipment Accounts Payable Salaries and Wages Payable Note Payable (long term) Common Stock Retained Earnings 750 500 5,800 5,800 3,820 2,650 420 1,600 $ 12,260 $10,900 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $39100 36,600 330 1,000 Net Income $ 1,170 Additional Data: a. Bought new hockey equipment for cash, $580. b. Borrowed $1,100 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. 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 with a minus s HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Flows from investing Activities Note Payable (long-term) Common Stock Retained Earnings 1,600 500 5,800 5,800 3,820 2,650 $12,260 $10,900 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $39,100 36,600 330 1,000 Net Income $ 1,170 Additional Data a. Bought new hockey equipment for cash, $580. b. Borrowed $1,100 cash from the bank during the year c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash. 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 with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities