E12-17 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.

	Current Year				Prior Year
Balance Sheet at December 31
Cash	$	3,900			$	4,200
Accounts receivable		900				600
Prepaid expenses		110				150
Equipment		400				0
	$	5,310			$	4,950
Wages payable	$	960			$	1,400
Contributed capital		2,000				1,400
Retained earnings		2,350				2,150
	$	5,310			$	4,950
Income Statement for Current Year
Lessons revenue	$	39,450
Wages expense		35,000
Other expenses		4,250
Net income	$	200

Additional Data:

1. Prepaid expenses relate to rent paid in advance.
2. Other expenses were paid in cash.
3. Purchased equipment for $400 cash at the end of the prior year to be used starting in current year.
4. An owner contributed capital by paying $600 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. (List cash outflows as negative amounts.)