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 $ 3,800 1,100 110 500 $ 4,200 700 160 0 $ 5,510 $5,060 $ 550 $1,000 Wages payable Common stock and additional paid-in capital Retained earnings 1,800 1,100 3,160 $ 5,510 2,960 $5,060 Income Statement for Current Year Lessons revenue Wages expense Other expenses $34,950 31,000 3,750 Net income $ 200 Additional Data: a. Prepaid expenses relate to rent paid in advance. b. Other expenses were paid in cash. C. Purchased equipment for $500 cash at the end of the current year to be used starting in following year. d. An owner contributed capital by paying $700 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. (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: Adjustments to reconcile net income to net cash provided by operating activities: 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 $ 0