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	$ 6,000	$ 3,800
Accounts Receivable	800	1,550
Equipment	4,400	4,000
Accumulated DepreciationEquipment	(1,300)	(1,150)
Total Assets	$ 9,900	$ 8,200
Accounts Payable	$ 800	$ 1,200
Salaries and Wages Payable	600	750
Notes Payable (long-term)	1,600	500
Common Stock	4,000	4,000
Retained Earnings	2,900	1,750
Total Liabilities and Stockholders Equity	$ 9,900	$ 8,200
Income Statement
Service Revenue	$ 41,500
Salaries and Wages Expense	39,000
Depreciation Expense	150
Income Tax Expense	1,200
Net Income	$ 1,150

Additional Data:

1. Bought new hockey equipment for cash, $400.
2. Borrowed $1,100 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 current year ended December 31 using the direct method. (Amounts to be deducted should be indicated with a minus sign.)