Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement are provided below, along with additional information. Prior Current Year Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Less: Accumulated Depreciation $ 5,860 1, 120 7,600 (2,055) $ 3,950 2, 240 6, 700 (1, 675) $ 12,525 $ 11, 215 $ Accounts Payable Wages Payable Long-Term Bank Loan Payable Contributed Capital Retained Earnings 720 1, 125 2,980 5,000 2, 700 $ 1,270 1,600 1, 430 5,000 1, 915 $ 12, 525 $ 11, 215 Income Statement (current year) Lessons Revenue Wages Expense Depreciation Expense Income Tax Expense $ 41, 800 39, 300 380 1, 335 Net Income $ 785 Additional notes: a. Bought new hockey equipment for cash, $900. b. Borrowed $1,550 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. 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: 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 Net increase in cash during the year Cash balance, January 1 Cash balance, December 31 $ 0