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. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common 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 Current Year $ 6,180 960 6,220 (1,560) $11,800 $ 440 440 1,700 5,600 3,620 $11,800 $38,700 36,200 560 610 260 $1,070 Previous Tesc $ 4,240 1,870 5,600 (1,310) $10,400 $1,000 750 500 5,600 2,550 $10,400 Additional Data: a. Bought new equipment for $2,100 cash and sold existing equipment for $560 cash. The equipment that was sold had cost $1,480 and had Accumulated Depreciation of $310 at the time of sale. b. Borrowed $1,200 cash from the bank during the year. Book Print erences Additional Data: a. Bought new equipment for $2,100 cash and sold existing equipment for $560 cash. The equipment that was sold had cost $1,480 and had Accumulated Depreciation of $310 at the time of sale. 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 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: Changes in current assets and current liabilities: Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in current assets and current liabilities: Cash Flows from Investing Activities: Cash Flows from Financing Activities