Shallow Waters Company was started several years ago by two diving instructors. 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 S700 cash at the end of 2015 to be used starting in 2016.
d. An owner contributed capital by paying $200 cash in exchange for the company€™s stock.
RequiredPrepare the statement of cash flows for the year ended December 31, 2015, using the indirectmethod.

2015 2014 Balance Sheet at December 31 Cash Accounts receivable Prepaid expenses Equipment S 3,900 1,300 100 700 S 6,000 $4,500 800 250 $5,550 Wages payable Contributed capital Retained earnings S 650 1,600 3,750 S 6,000 $1,100 1400 3,050 $5,550 Income Statement for 2015 Lessons revenue Wages expense Other expenses Net income S34,550 30,200 3,650 S 700