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	$	4,000			$	4,500
Accounts receivable		1,300				800
Prepaid expenses		100				250
Equipment		700				0
	$	6,100			$	5,550
Wages payable	$	650			$	1,100
Common stock and additional paid-in capital		1,700				1,400
Retained earnings		3,750				3,050
	$	6,100			$	5,550
Income Statement for Current Year
Lessons revenue	$	34,550
Wages expense		30,200
Other expenses		3,650
Net income	$	700

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 following year.

d. An owner contributed capital by paying $300 cash in exchange for the companys 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 flow from operating activities: Cash flows from investing activities: Cash flows from financing activities