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.

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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