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. Current Year Previous Year Balance Sheet at December 31 Cash $ 5,580 $ 6,465 Accounts Receivable 2,780 1,350 Prepaid Rent 270 135 Total Assets $ 8,550 $ 7,95 Salaries and Wages Payable $ 1,200 $ 2,800 Common Stock 2,900 1,850 Retained Earnings 4,450 3,300 Total Liabilities and Stockholders' Equity $ 8,550 $ 7,950 Income Statement Service Revenue $ 52,650 Salaries and Wages Expense 47, eee Rent and Office Expenses 4,500 Net Income $ 1,150 Additional Data: a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $1.050 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 slgn.) 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 0 Cash Flows from Financing Activities: 0 S 0