Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment s6,200 3,880 1,650 4,580 850 4,950 (1,400) 1,200) 8,750 $ 1,000 750 500 4,500 2 000 8,750 $10,600 S550 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 550 1,700 4,500 3,308 $10,600 Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Incone Tax Expense Net Income $40,500 38,000 200 s 1,300 Additional Data: a Bought new hockey equipment for cash, $450 b. Borrowed $1,200 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 Activies Cash Flows from Financing Activities