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 $ 6,260 880 5,280 (1,460) $ 3,920 1,710 Total Assets $ 10,960 4,800 (1,230) $ 9,200 Accounts Payable $ 520 $ 1,000 Common Stock Salaries and Wages Payable Notes Payable (long-term) Retained Earnings Total Liabilities and Stockholders' 520 750 1,700 500 4,800 4,800 3,420 2,150 $ 10,960 $ 9,200 Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Additional Data: a. Bought new hockey equipment for cash, $480. b. Borrowed $1,200 cash from the bank during the year. $ 39,900 37,400 230 1,000 $ 1,270 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 indirect 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: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities 0 Cash Flows from Investing Activities: 0 Cash Flows from Financing Activities: 0