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 $ 6,480 990 6,490 (1,680) $ 12,280 $ 4,360 1,930 5,900 (1,340) $ 10,850 23 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 $ 410 410 1,700 5,900 3,860 $ 12,280 $ 1,000 750 500 5,900 2,700 $ 10,850 $ 39,300 36,800 340 1,000 $ 1,160 Additional Data: a. Bought new hockey equipment for cash, $590. b. Borrowed $1,200 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 direct method. (Amounts to be deducted should be indicated with a minus sign.) X Answer is not complete. HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Paid for Income Tax Cash Paid for Salaries and Wages to Employees Cash Paid for Other Operating Expenses 0 Net Cash Provided by Operating Activities Cash Flows from Investing Activities: 0 Net Cash Used in Investing Activities Cash Flows from Financing Activities: Cash Proceeds from Bank Loan 0 Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 olololol $ 0