Help 2 5.83 Soints The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Income Statement Sales Revenue $ 39,600 Expenses: Cost of Goods Sold Depreciation Expense 16,500 1,100 Salaries and Wages Expense 8,100 Rent Expense 3,600 Insurance Expense 1.450 Interest Expense 1,350 Utilities Expense 950 Net Income $ 6,55 eBook Print References Selected Balance Sheet Accounts Ending Balances Accounts Receivable $ 580 Inventory 800 Accounts Payable 440 Prepaid Rent 33 Prepaid Insurance 29 Salaries and Wages Payable 62 Utilities Payable 28 Beginning Balances $ 620 675 500 24 36 41 19 MA9 Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) DIRECT PRODUCTS COMPANY Statement of Cash Flows (Partial) 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 $ 0 5 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 5.83 points Book Current Year $ 6,480 860 4,840 (1.280) $ 10,900 $ 740 540 1,600 4,600 3,420 $ 10,900 Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes 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 Previous Year $4,040 1,670 4,600 (1.210) $ 9, 100 $ 1,200 750 500 4,600 2,050 $ 9, 100 Print References $ 40,300 37,800 460 510 160 $ 1,370 Additional Data: a. Bought new equipment for $1,600 cash and sold existing equipment for $460 cash. The equipment that was sold had cost $1,360 and had Accumulated Depreciation of $390 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. Check my work 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 Investing Activities Cash Flows from Financing Activities: Changes in Current Assets and Current Liabilities 3 Cash Flows from Investing Activities 0 Cash Flows from Financing Activities: 0 $ 0