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 Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment $ 6,240 920 5,720 (1,540) $ 4,280 1.790 5.200 (1.270) $ 11,340 $10,000 $ $ 1,200 750 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings 680 480 1,000 5,200 3,380 500 5.200 2.350 $11.340 $10,000 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $37,000 35.400 270 1.200 Net Income 1.030 Additional Data Bought new hockey equipment for cash. 5620 b. Borrowed 51.100 cash from the bank during the year Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liabilty 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 Amounts to be deducted should be indicated with a minus sign) in the rest method HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activitas U. DUTTUWET, TUUEST TO TEATRO Car. 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 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:
