E12-18 Preparing a Statement of Cash Flows (Indirect Method) L012-2,12-4, 12-6 Computer Service and Repair was started five years ago by two college roommates. 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 Accounts receivable Prepaid expenses Equipment S 7,100 9,350 600 100 1,200 600 550 S 9,350 Wages payable Short-term note payable Common stock Retained eamings 450 200 3,000 5,700 $10,050 1,600 3,000 5,450 s 9,350-350 050- Income Statement for Current Year Service revenue Depreciation expense Salaries expense Other expenses Net income $44,000 100 35,000 8,650 S 250 Additional Data: a. Prepaid expenses relate to rent paid in advance b. Other expenses were paid in cash. c. Purchased equipment for $550 cash at the beginning of the current year and recorded $100 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 $200