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Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement, as well as additional information, are presented below. Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Prepaid Rent Total Assets Salaries and Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses Net Income $ 3,900 1,500 150 $ 5,550 $ 600 1,700 3,250 $ 5,550 $ 4,725 750 75 $ 5,550 $ 1,600 1,250 2,700 $ 5,550 $ 39,450 35,000 3,900 $ 550 Additional Data: a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $450 cash in exchange for the company's stock. 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 by a minus sign.) DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Collected from Customers Cash Paid for Salaries and Wages to Employees Cash paid for rent and office expenses 0 Cash Flows Used in Investing Activities: Cash Flows from Financing Activities: Cash Proceeds from Issuing Stock 0 Net Cash Provided by Financing Activities Net Decrease in Cash during the Year Cash Balance, January 1 Cash Balance, December 31 $ 0

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