PA12-4 Preparing and Interpreting a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] 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. Balance Sheet at December 31 6,180 S 4,160 1,730 Accounts Receivable 4,900 Accumulated Depreciation-Equipment 1.480) (1.240 $10,980 9,550 710 1,200 510 500 4.900 4.900 Accounts Payable Salaries and Wages Payable Note Payable (ong-term) Common Stock 3,260 2,200 Retained Earnings $10,980 9,550 Income Statement 37,200 Salaries and Wages Expense Depreciation Expense Income Tax Expense 1.060 Net Income a. Bought new hockey equipment for cash, SA90. b. Borrowed $1.100 cash from the bank during the year. Because c. includes only purchases of services made was fully paid in there are no liability accounts relating that this expense 1. Prepare the statement of cash fows for the current year ended December 31 using the indirect method. Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY For the Year Ended December 31