PA12-6 (Algo) Preparing and Interpreting a Statement of Cash Flows (Direct Method) [LO 12-3, LO 12-4,...

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PA12-6 (Algo) Preparing and Interpreting a Statement of Cash Flows (Direct Method) [LO 12-3, LO 12-4, LO 12-5, LO 12-6] 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 Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Depreciation Expense Salaries and Wages Expense Income Tax Expense Net Income Current Year Previous Year $ 6,060 $ 3,920 830 4,730 (1,360) $ 10,260 1,610 4,300 (1,180) $ 8,650 $ 1,200 750 $ 770 570 1,600 4,300 3,020 $ 10,260 $ 40,900 38,400 180 1,200 $ 1,120 500 4,300 1,900 $ 8,650 Additional Data: PA12-6 (Algo) Preparing and Interpreting a Statement of Cash Flows (Direct Method) [LO 12-3, LO 12-4, LO 12-5, LO 12-6] 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 Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Depreciation Expense Salaries and Wages Expense Income Tax Expense Net Income Current Year Previous Year $ 6,060 $ 3,920 830 4,730 (1,360) $ 10,260 1,610 4,300 (1,180) $ 8,650 $ 1,200 750 $ 770 570 1,600 4,300 3,020 $ 10,260 $ 40,900 38,400 180 1,200 $ 1,120 500 4,300 1,900 $ 8,650 Additional Data: