1:42 PM Wed Oct 21 1 80% T Current Year Prior Year Balance Sheet at December 31 Cash $ 3,300 $4,000 Accounts receivable 700 500 Prepaid expenses 100 50 350 O Equipment Accumulated depreciation (50) 0 $ 4,400 $4,550 $ 350 $1,100 Wages payable Short-term note payable Common stock 300 O 1,000 1,000 Retained earnings 2,750 2,450 $ 4,400 $4,550 Income Statement for Current Year Service revenue $34,000 50 Depreciation expense Salaries expense 30,000 Other expenses 3,650 Net income $ 300 2 4 v 1:42 PM Wed Oct 21 1 80% T + 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 $300. Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. 3 4 V