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 $ 6,120 $ 4,040 Accounts Receivable 860 1,670 Equipment 5,060 4,600 Accumulated Depreciation-Equipment (1,420) (1,210) Total Assets $ 10,620 $ 9,100 Accounts Payable $ 740 $ 1,200 Salaries and Wages Payable 540 750 Notes Payable (long-tern) 1,600 See Connon Stock 4,600 4,600 Retained Earnings 3,140 2,050 Total Liabilities and Stockholders' Equity $ 10,620 $ 9,100 Income Statement Service Revenue $ 40,300 Salaries and Wages Expense 37,800 Depreciation Expense 210 Incone Tax Expense 1,200 Net Incone $ 1,090 Additional Data: a. Bought new hockey equipment for cash, $460. b. Borrowed $1,100 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 Mability 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 Additional Data: a. Bought new hockey equipment for cash, $460. b. Borrowed $1,100 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 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 Canh 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 Liabilitles 0 Cash Flows from Investing Activities: 0 Cash Flow from Financing Activities 0 5 0