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 Previous Year Current Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment $6,200 850 4,950 (1,400 $10,600 $ 3,800 1,650 4,500 1,200 $ 8,750 $1,000 750 500 4,500 2,000 $ 8,750 Total Assets $550 550 1,700 4,500 3,300 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $10,600 Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $40,500 38,000 200 1,000 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 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities