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Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information.

	Current Year					Previous Year
Balance Sheet at December 31
Cash		$	6,180				$	4,260
Accounts Receivable			940					1,830
Equipment			5,940					5,400
Accumulated DepreciationEquipment			(1,580	)				(1,290	)
		$	11,480				$	10,200
Accounts Payable		$	560				$	1,100
Salaries and Wages Payable			460					750
Note Payable (long-term)			1,500					500
Common Stock			5,400					5,400
Retained Earnings			3,560					2,450
		$	11,480				$	10,200
Income Statement
Service Revenue		$	38,300
Salaries and Wages Expense			35,800
Depreciation Expense			290
Income Tax Expense			1,100
Net Income		$	1,110

Additional Data:

a.	Bought new hockey equipment for cash, $540.
b.	Borrowed $1,000 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 this expense was fully paid in cash.

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.) HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities

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