11. value: 2.50 points Soft Touch Company was started several years ago by two golf instructors. The company's comparative balance sheets and income statement are presented below, along with additional information. Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation Equipment $14,160 2.700 12,100 (3,440) $ 9,000 3.900 11,000 (2,900) $25,520 $21,000 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 1,400 1,160 3,400 11,000 8,560 $ 2,400 1,700 1,000 11,000 4,900 $25,520 $21,000 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $76,600 70,000 540 2,400 Net Income $ 3,660 Additional Data: a. Bought new golf clubs using cash, $1,100. b. Borrowed $2,400 cash from the bank during the year. 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 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.)