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	$	6,120		$	4,140
Accounts Receivable		910			1,770
Equipment		5,610			5,100
Accumulated DepreciationEquipment		(1,520	)		(1,260	)
Total Assets	$	11,120		$	9,750
Accounts Payable	$	590		$	1,100
Salaries and Wages Payable		490			750
Note Payable (long-term)		1,500			500
Common Stock		5,100			5,100
Retained Earnings		3,440			2,300
Total Liabilities and Stockholders Equity	$	11,120		$	9,750
Income Statement
Service Revenue	$	37,700
Salaries and Wages Expense		35,200
Depreciation Expense		260
Income Tax Expense		1,100
Net Income	$	1,140

Additional Data:

1. Bought new hockey equipment for cash, $510.
2. Borrowed $1,000 cash from the bank during the year.
3. 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 indirect 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: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation Expense Decrease in Accounts Receivable Increase in Accounts Receivable Increase in Accounts Receivable Cash Flows from Investing Activities: Decrease in Accounts Receivable Increase in Salaries and Wages Payable Cash Flows from Financing Activities: Depreciation Expense : Increase in Salaries and Wages Payable Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 $ 6,140