PB12-6 (Algo) Preparing and Interpreting a Statement of Cash Flows (Direct Method) [LO 12-3, LO 12-4, LO 12-5, LO 12-6) 3ea 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 $ 6, eee $ 6,990 Accounts Receivable 3, Bee 1,500 Prepaid Rent 150 Total Assets $ 9,300 $ 8,550 Salaries and Wages Payable $ 1,350 $ 3,100 Common Stock 3,200 2,080 Retained Earnings 4,750 3,450 Total Liabilities and Stockholders' Equity $ 9,300 $ 8,550 Income Statement Service Revenue $ 55,950 Salaries and Wages Expense 50, eee Rent and Office Expenses 4,650 Net Income $ 1,300 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 $1.200 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 direct 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: 0 Cash Flows Used in Investing Activities: Cash Flows from Financing Activities: 0 S 0