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		$	6,200				$	3,800
Accounts Receivable			850					1,650
Equipment			4,950					4,500
Accumulated DepreciationEquipment			(1,400	)				(1,200	)
		$	10,600				$	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			3,300					2,000
		$	10,600				$	8,750
Income Statement
Service Revenue		$	40,500
Salaries and Wages Expense			38,000
Depreciation Expense			200
Income Tax Expense			1,000
Net Income		$	1,300

Additional Data:
a.	Bought new hockey equipment for cash, $450.
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.

HEADS UP COMPANY
Statement of Cash Flows
For the Year Ended December 31
Cash Flows from Operating Activities:
		0
Cash Flows from Investing Activities:
		0
Cash Flows from Financing Activities:
		0
		$0