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. THERE ARE NO OPTIONS FOR NET INCOME IN THE ANSWERS FOR ME.

Additional Data:

1. Bought new hockey equipment for cash, $600.
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 current year ended December 31 using the direct method.

The following are the ONLY options available in the drop downs:

Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Current Year $ 6,300 1,000 6,600 (1,700) $ 12,200 $500 400 1,500 6,000 3,800 $ 12,200 $ 39,500 37,000 350 1,100 $ 1,050 Previous Year $ 4,500 1,950 6,000 (1,350) $ 11,100 $ 1,100 750 500 6,000 2,750 $ 11,100 HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Collected from Customers Cash Paid for Other Operating Expenses Cash Paid for Income Tax Cash Flows from Investing Activities: Cash Payments to Purchase Equipment Cash Flows from Financing Activities: Cash Proceeds from Bank Loan $ 0 0 Cash Balance, December 31 Cash Balance, January 1 Cash Collected from Customers Cash Paid for Income Tax Cash Paid for Income Tax Cash Paid for Other Operating Expenses Cash Paid for Salaries and Wages to Employees Cash Payments to Purchase Equipment Cash Proceeds from Bank Loan