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 $ 6,000 1,000 6,700 (1.600) $12, 100 $ 4,500 1.950 6,000 (1350) $11, 100 $ 1.100 500 Balance Sheet at December 31 Cash Accounts Receivable Equipement Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Connon Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense Net Income 400 1,500 6,000 3,700 $ 12.100 500 6.000 2,750 $11,100 $39.500 37.000 600 300 950 Additional Data: a. Bought new equipment for $2,300 cash and sold existing equipment for $600 cash. The equipment that was sold had cost $1,600 and had Accumulated Depreciation of $350 at the time of sale. b. Borrowed $1,000 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 year ended December 31 using the Indirect method. (Amounts to be deducted should be indicated with a minus sign.)