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 Accounts Receivable Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Connon Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense Net Income $ 6,389 810 4,140 (1,130) $10,200 $ 690 590 1,500 4,100 3,320 $10,200 $ 3,740 1,570 4,180 (1,160) $ 8,250 $ 1,100 75e See 4,100 1,800 $ 8,250 $41,300 38,800 410 460 $ 1,520 Additional Data: a. Bought new equipment for $1,350 cash and sold existing equipment for $410 cash. The equipment that was sold had cost $1,310 and had Accumulated Depreciation of $440 at the time of sale. b. Borrowed $1,000 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