indirect method and direct method of cash flows

PA12-4 Preparing and Interpreting a Statement of Cash Flows (Indirect Method) Heads Up Company was started several years ago by two hockey instructors. The compary's comparative balance sheets and income statement follow, along with additional information. Additional Data: a. Bought new hockey equipment for cash, $500. b. Borrowed 51,200 cash from the bank during the year. c. Accounts Payable includes only purchases of services made en credit for operating purposes. Because there are no liability accounts relating to inconve tax, assume that this expense was fully paid in cash. Required: 1. Prepare the statemeat of cash flows for the current year endod December 31 using the indirect Bethod. 2. Use the stasement of cash flows to evaluaie the canpany's cash flows