9 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 2 points Balance Sheet at December 31 Cash Accounts Receivable Equipent Accumulated Depreciation Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (lontero) Common Stock Retained Earnings Total Liabilities and Stockholders uity Income Statement Service Revenue Salaries and Wages Expense Depreciation Experte Income Tax pense Net Income $ 11,620 1,600 13,200 2,210) $ 24,190 0 720 2,100 12,000 370 $ 24,190 50,250 2,300 12,000 (1.000) * 19,250 51,00 1,150 1,000 12,000 3.000 19,250 Book Print Heference $ 70,000 64,500 430 1100 54,570 Additional Data: a Bought new golf clubs using cash $1.200 b. Borrowed $1,300 cash from the bank during the year 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 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.) SOFT TOUCH COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities cos 0 Cash Flows from Investing Activities 0 Cash Flows from Financing Activities 0 S O