Shallow Waters Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement are presented below, along with additional information. Current Year Prior Year Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Wages payable Common stock and additional paid-in capital Retained earnings Income Statement for Current Year Lessons revenue Wages expense Other expenses Net income $ 3,700 $4,100 1,300 120 1,000 150 700 $5,820 $5,250 $620 $1,350 2,600 1,800 2,600 2,100 $ 5,820 $5,250 39,450 35,000 3,950 $500 Additional Data a Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. c Purchased equipment for $700 cash at the end of the current year to be used starting in the following year. d. An owner contributed capital by paying $800 cash in exchange for the company's stock. Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts. SHALLOW WATERS COMPANY Statement of Cash Flows For the Year Ended December 31, Current Year Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities Increase in accounts receivable Decrease in prepaid expenses Decrease in wages payable Net cash used for operating activities Cash flows from investing activities: Cash paid for equipment Net cash used for investing activities Cash flows from financing activities Cash proceeds from issuing stock Net cash provided by financing activities Net decrease in cash during the year Cash balance, January 1 Cash balance, December 31 0 0 $ 0