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	$	6,460		$	3,680
Accounts Receivable		820			1,590
Equipment		4,280			4,200
Accumulated DepreciationEquipment		(1,160	)		(1,170	)
Total Assets	$	10,400		$	8,300
Accounts Payable	$	580		$	1,000
Salaries and Wages Payable		580			750
Note Payable (long-term)		1,700			500
Common Stock		4,200			4,200
Retained Earnings		3,340			1,850
Total Liabilities and Stockholders Equity	$	10,400		$	8,300
Income Statement
Service Revenue	$	41,100
Salaries and Wages Expense		38,600
Depreciation Expense		420
Loss on Disposal of Equipment		470
Income Tax Expense		120
Net Income	$	1,490

Additional Data:

1. Bought new equipment for $1,400 cash and sold existing equipment for $420 cash. The equipment that was sold had cost $1,320 and had Accumulated Depreciation of $430 at the time of sale.
2. Borrowed $1,200 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 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: Cash Flows from Investing Activities: Cash Flows from Financing Activities