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

Help Save & Exit Sulb the work you have completed so far. It does not indicate completion. Return to questio Soft Touch Company was started several years ago by two golf statement are presented below, along with additional information. instructors. The company's comparative balance sheets and income Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable $13,740 2,400 12,100 8,250 3,600 11,000 Accumulated Depreciation-Equipment (3,110) Total Assets $25,130 $20,250 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 1,100 1,040 3,100 11,000 8,890 $ 2,100 1,550 1,000 11,000 4,600 Total Liabilities and Stockholders' Equity $25,130 $20,250 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $75,400 68,500 510 4,290 Check my work mode : This shows what is corr rect or incorrect for the work you have completed so far. It does not indicate completion. Return to questie Additional Data: a. Bought new golf clubs using cash, $1,100. Borrowed $2.100 cash from the bank during the year. c. Accounts Payabeincesny 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 direct method. TIP: Remember to exclude depreciation expense when converting to the cash basis. (Amounts to be deducted should be indicated with a minus sign.,) Answer is not complete. SOFT TOUCH COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Cash Collected from Customers s 75,400 Prev 4 of 10 Next 4 Cash Flows from Operating Activities: Cash Collected from Customers 75,4008 Cash Paid for Salaries and Wages to Employees(510) Net Cash Provided by Operating Activities 74,890 Cash Flows from Investing Activities: Cash Payments to Purchase Equipment 1,1003 Net Cash Used in Investing Activities 1,100 Cash Flows from Financing Activities: Cash Proceeds from Bank Loan 2,100 2,100 5,490 8,250 $ 13,740 Net Cash Provided by Financing Activities Net Increase in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 K Prev4 of 10 Next>