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 @ dec. 31
cash	$6120	$4260
accounts recieveable	940	1830
equipment	5980	5400
accum. depreciation - equipment	(1540)	(1290)
	$11500	$10200
accounts payable	$560	$1100
salaries payable	460	750
note payable (long term)	1500	500
common stock	5400	5400
retained earnings	3580	2450
	$11500	$10200
income statement
service revenue	$38300
salaries exepense	35800
depreciation expense	540
loss on disposal of equipment	590
income tax expense	240
net income	$1130

Additional Data:

a.	Bought new equipment for $2,000 cash and sold existing equipment for $540 cash. The equipment that was sold had cost $1,420 and had Accumulated Depreciation of $290 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.)