E12-17 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO12-2, 12-4, 12-6

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.

E12-17 (Algo) Preparing a Statement of Cash Flows (Indirect Method) LO12-2, 12-4, 126 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 $700 cash at the end of the current year to be used starting in the following year. d. An owner contributed capital by paying $500 cash in exchange for the company's stock. Required: Prepare the statement of cash flows for the year ended December 31, current year, using the indirect method. Note: List cash outflows as negative amounts. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ SHALLOW WATERS COMPANY } \\ \begin{tabular}{|l|l|} \hline \multicolumn{1}{|c|}{ For the Year Ended December 31, Current Year } \\ \hline Cash flows from operating activities: & \\ \hline & \\ \hline Adjustments to reconcile net income to net cash provided by operating activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Cash flows from investing activities: & \\ \hline & \\ \hline & \\ \hline & \\ \hline Cash flows from financing activities: & \\ \hline & \\ \hline & \\ \hline \end{tabular} \\ \hline \end{tabular}