Heads Up Company was started several years ago by two hockey instructors. The...
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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. Current Year Previous Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment 5 6,060 $ 3.920 1,610 4,300 1,180 5 10,260 $ 8,650 830 4,730 1,360 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ TTO 1,200 750 500 4,300 30201.900 5 10,260 $8,650 570 1,600 4,300 Income Statement Sales Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income $ 40,900 $ 38,400 180 1,200 $ 1,120 Additional Data: a. Bought new hockey equipment for cash, $430 b. Borrowed $1,100 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 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. HEADS UP COMPANY Statement of Cash Flows
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