Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information.

	Current Year			Previous Year
Balance Sheet at December 31
Cash	$	6,380		$	3,740
Accounts Receivable		810			1,570
Equipment		4,140			4,100
Accumulated DepreciationEquipment		(1,130	)		(1,160	)
Total Assets	$	10,200		$	8,250
Accounts Payable	$	690		$	1,100
Salaries and Wages Payable		590			750
Note Payable (long-term)		1,500			500
Common Stock		4,100			4,100
Retained Earnings		3,320			1,800
Total Liabilities and Stockholders Equity	$	10,200		$	8,250
Income Statement
Service Revenue	$	41,300
Salaries and Wages Expense		38,800
Depreciation Expense		410
Loss on Disposal of Equipment		460
Income Tax Expense		110
Net Income	$	1,520

Additional Data:

1. Bought new equipment for $1,350 cash and sold existing equipment for $410 cash. The equipment that was sold had cost $1,310 and had Accumulated Depreciation of $440 at the time of sale.
2. Borrowed $1,000 cash from the bank during the year.
3. 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 year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Required: 1. Prepare the statement of cash flows for the year ended December 31 using the indirect method (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense Changes in current assets and current liabilities: Decrease in Accounts Receivable Decrease in Accounts Payable Decrease in Salaries and Wages Payable 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0 Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 $ 0