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 $ 6,180 $ 4,260 Accounts Receivable 940 1,830 Equipment 5,940 5,400 Accumulated DepreciationEquipment (1,580) (1,290) Total Assets $ 11,480 $ 10,200 Accounts Payable $ 560 $ 1,100 Salaries and Wages Payable 460 750 Notes Payable (long-term) 1,500 500 Common Stock 5,400 5,400 Retained Earnings 3,560 2,450 Total Liabilities and Stockholders Equity $ 11,480 $ 10,200 Income Statement Service Revenue $ 38,300 Salaries and Wages Expense 35,800 Depreciation Expense 290 Income Tax Expense 1,100 Net Income $ 1,110 Additional Data: Bought new hockey equipment for cash, $540. Borrowed $1,000 cash from the bank during the year. 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. (Amounts to be deducted should be indicated with a minus sign.)