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	$	6,400		$	3,800
Accounts Receivable		850			1,650
Equipment		4,700			4,500
Accumulated DepreciationEquipment		(1,250	)		(1,200	)
	$	10,700		$	8,750
Accounts Payable	$	550		$	1,000
Salaries and Wages Payable		550			750
Note Payable (long-term)		1,700			500
Common Stock		4,500			4,500
Retained Earnings		3,400			2,000
	$	10,700		$	8,750
Income Statement
Service Revenue	$	40,500
Salaries and Wages Expense		38,000
Depreciation Expense		450
Loss on Disposal of Equipment		500
Income Tax Expense		150
Net Income	$	1,400

Additional Data:

a.	Bought new equipment for $1,550 cash and sold existing equipment for $450 cash. The equipment that was sold had cost $1,350 and had Accumulated Depreciation of $400 at the time of sale.
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 year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)