Heads Up Company wes started several years ago by two hockey Instructors. The companys comparat balance sheets and icome stacement follow, alang with 5 6240 4520 Equipment 6.460 5800 11-26 at 10.09.36 PM 120 $900 UP C Statement of Cash Flows For the Year Ended December 31 620 1200 ccounts Payable Salaries and Wages Paysble Note Payatbe fong-term) Comson Stock Retained Enrnings 5,800 5800 3660 2650 Cash Flows from Oporating Activitios Net Income Adjustments to Reconcile Net Income to Net 12100 $00 $ 10100 Income Statement 539100 Cash Provided by Operating Activities: Salaries and Wages Experne355Co Depreciation Expense Loss on D sposal of Equipmen Income Tax Expese 580 930 Decrease in Accounts Receivable Decrease in Accounts Payable Decrease in Salaries and Wages Payable(330) 280 5 10o Net Cash Provided by Operating Activities 1,610 Cash Flows from Investing Activities Cash Payments to Purchase Equipment 660 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. Net Cash Used in Investing Activities 660 b. Borrowed $1,100 cash from the bank during the year. C. Accounts Payable includes only purchases of services made on credit for operating Cash Flows from Financing Activitics 1,100 Cash Proceeds from Bank Loan purposes. Because there are no liability accounts relating to ncome tax, assume that this expense was fully paid in cash Net Cash Provided by Financing Activities 720 Required: 1. Prepare the statement of cash flows for the year ended December 31 using the Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 indirect method. (Amounts to be deducted should be indicated with a minus sign.) 5,000