t Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Balance Sheet at December 31 $ 6,180 4,260 Cash Accounts Receivable Equipment 940 5,940 1.830 5,400 Accumulated Depreciation Equipment (1,580) (1.200) $11,480$10.200 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings S 560 S 1.100 750 500 5,400 3,5602,450 400 1,500 5.400 $11,480 $10,200 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $38.300 35,800 290 1.100 Net Income s 1.110 Additional Data: a. Bought new hockey equipment for cash, $540 b Borrowed 51,000 cash from the bank during the year o. Accounts Paya able includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income t x, assume that this expense was fuly paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the direct method (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Additional Data: a. Bought new hockey equipment for cash, $540. b. Borrowed $1,000 cash from the bank during the year c. Accoun ts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this 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. (Amounts to be deducted should be indicated with a minus sign.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Flows from Investing Activities Cash Flows from Financing Activities