Soft Touch Company was started several years ago by two golf instructors. The companys comparative balance sheets and income statement are presented below, along with additional information.

	Current Year	Previous Year
Balance Sheet at December 31
Cash	$ 13,560	$ 7,750
Accounts Receivable	2,300	3,400
Equipment	13,200	12,000
Accumulated DepreciationEquipment	(2,890)	(2,400)
Total Assets	$ 26,170	$ 20,750
Accounts Payable	$ 1,400	$ 1,900
Salaries and Wages Payable	960	1,450
Notes Payable (long-term)	2,900	1,000
Common Stock	12,000	12,000
Retained Earnings	8,910	4,400
Total Liabilities and Stockholders Equity	$ 26,170	$ 20,750
Income Statement
Service Revenue	$ 74,400
Salaries and Wages Expense	67,500
Depreciation Expense	490
Income Tax Expense	1,900
Net Income	$ 4,510

Additional Data:

1. Bought new golf clubs using cash, $1,200.
2. Borrowed $1,900 cash from the bank during the year.
3. 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 Income Tax Expense was fully paid in cash.

Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)