PB12-4 (Algo) Preparing and Interpreting a Statement of Cash Flows (Indirect Method) [LO 12-2, LO 12-3, LO 12-4, LO 12-5] Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement, as well as additional information, are presented below. Balance Sheet at December 31 Cash Accounts Receivable Prepaid Rent Total Assets Salaries and Wages Payable Common Stock Retained Earnings Current Year Previous Year $ 5,595 $ 4,740 2,100 210 $ 7,050 $ 900 2,300 3,850 1,050 105 $ 6,750 $ 2,200 1,550 3,000 $ 6,750 Total Liabilities and Stockholders' Equity $ 7,050 Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses $ 46,050 41,000 4,200 Net Income Additional Data: $ 850 a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $750 cash in exchange for the company's stock. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated by a minus sign.) DIVE IN 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