PB12-4 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 are presented below. Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Prepaid Expenses $ 3,200 1,000 100 $4,000 500 50 $ 4,300 $4,550 $ Salaries and Wages Payable Common Stock Retained Earnings 350 1,200 2,750 $1,100 1,000 2,450 $ 4,300 $4,550 Income Statement Service Revenue Salaries and Wages Expense Other Operating Expenses $33,950 30,000 3,650 Net Income $ 300 Additional Data: a. Prepaid Expenses relate to rent paid in advance. b. Other Operating Expenses were paid in cash. c. An owner contributed capital by paying $200 cash in exchange for the company's stock