Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information.

Additional Data:
a. Prepaid expenses relate to rent paid in advance.
b. Other expenses were paid in cash.
c. Purchased equipment for $350 cash at the beginning of the current year and recorded $50 of depreciation expense at the end of the current year.
d. At the end of the current year, the company signed a short-term note payable to the bank for $250.
Required:
Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method.

Current Year Prior Year Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment Accumulated depreciation $ 3,250 700 100 350 (50) 4,350 $4,000 500 50 0 $4,550 $1,100 Wages payable Short-term note payable Common stock Retained earnings S 350 250 1,000 2,750 S 4,350 1000 2.450 $4.550 Income Statement for Current Year Service revenue Depreciation expense Salaries expense Other expenses Net income $34,000 50 30,000 3,650 $ 300