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. 2017 2016 $ Balance Sheet at December 31 Cash Accounts Receivable Equipment Less: Accumulated Depreciation $ 6,000 1,000 5,500 (1,500) 4,000 1,750 5,000 (1,250) $ 11,000 $9,500 $ $ 1,000 750 Accounts Payable Wages Payable Long-Term Bank Loan Payable Contributed Capital Retained Earnings 500 500 1,500 5,000 3,500 500 5,000 2,250 $ 11,000 $ 9,500 Income Statement for 2017 Lessons Revenue Wages Expense Depreciation Expense Income Tax Expense $ 37,500 35,000 250 1,000 Net Income $ 1,250 Additional notes. a. Bought new hockey equipment for cash, $500. b. Borrowed $1,000 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, 2017, using the direct method. (Amounts to be deducted should be indicated by a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Net increase in cash during the year Cash balance, January 1, 2017 Cash balance, December 31, 2017