Soft Touch Company was started several years ago by two golf instructors. The company's comparative balance sheets and income statement are presented below, along with additional information.

a. Bought new golf clubs using cash, $1,200

b. borrowed $1,300 cash from the bank during the year

c. Accounts payable includes only purchases of services made on credit for operafing purposes. Because there are no liability accounts relating to income tax, assume that income Tax Expense was fully paid in cash.

prepare the statment of cash flows for the current year ended december 31 using the indirecr method

Soft Touch Company was started several years ago by two golf instructors. The company's comparative balance sheets and income statement are presented below, along with additional Information Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expanse Depreciation Expense Income Tax Expense Net Incong $11,620 1,600 13,200 (2,230) $ 24,100 $ 720 2,300 12.00 8,370 $24, 190 $ 6,250 2,800 12,000 (1,300) $19,250 $ 1,300 1,150 1,000 12,000 3,00 519,250 $70,00 64,500 1.00 $ 4,50 Additional Data: a. Bought new golf clubs using cash $1,200. b. Borrowed $1,300 cash from the bank during the year c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax assume that Income Tax Expense was fully paid in cash Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the Indirect method (Amounts to be deducted should be indicated with a minus sign.) $ Answer is complete but not entirely correct. SOFT TOUCH COMPANY Statement of Cash Flows For the Year Ended December 31 Cashews from Operating Activities Net Income 4.110 Adjustments to Reconcile Net Income to Nel Cash Provided by Operating Activities Depreciation Expense 000 Cash Payments to Purchase avant 330 Decrease in Accounts Receivable 1.200 Decrease in Accounts Payable (500) Decrease in salaries and Wes Payable (4301 Net Cash Provided by Operating Avis 6.370 Cash Fows from investing A Can Payments to Purchase Equipment 1.000 Cash Payments to Purchase Ewant (2.300) Net Casa US investing Activities (1300) Cantom Financing Activities Cash Proceeds from Bank Loan 1.300 0.000 . 5 Het Crowded by Financing Acties Wellness Chung the Year SIS 1.300 8.30