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 Year Previous Year Balance Sheet at December 31 Cash $ 6,240 $ 4,520 Accounts Receivable 980 1,910 Equipment 6,460 5,800 Accumulated Depreciation-Equipment (1,580) (1,330) Total Assets $12, 100 $10,900 Accounts Payable $ 620 $ 1,200 Salaries and Wages Payable 420 750 Note Payable long-term) 1,600 500 Common Stock 5,800 5,800 Retained Earnings 3,660 2,650 Total Liabilities and Stockholders' Equity $12,100 $19,900 Income Statement Service Revenue $39, 100 Salaries and Wages Expense 36,600 Depreciation Expense 580 Loss on Disposal of Equipment 630 Income Tax Expense 280 Net Income $ 1,010 Additional Data: a. Bought new equipment for $2.200 cash and sold existing equipment for $580 cash. The equipment that was sold had cost $1.540 and had Accumulated Depreciation of $330 at the time of sale, b. Borrowed $1,100 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 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: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities