Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation Equipment S 6,480 S 4,360 1,930 5,900 (1,680) (1,340) 990 6.490 $12,280 $10,850 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 410 1,700 5,900 3,860 S 410 1,000 750 500 5,900 2,700 S12,280 $10,850 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $39,300 36.800 340 1.000 Net Income S 1,160 Additional Data a. Bought new hockey equipment for cash, S590 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. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Cash Collected from Customers Cash Flows from Investing Activities Cash Flows from Financing Activities