Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income...

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Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional Information. Balance Sheet at December 31 E Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-tern) Connon Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Experise Net Income Additional Data: a. Bought new hockey equipment for cash, $430. b. Borrowed $1,100 cash from the bank during the year. Current Year $ 6,060 830 4,730 (1,360) $ 10,260 $ 770 570 1,600 4,300 3,020 $ 10,260 $ 40,900 38,400 180 1,200 $ 1,120 Previous Year $ 3,920 1,610 4,300 (1.180) $ 8,650 $ 1,200 750 500 4,300 1,900 $ 8,650 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 this expense was fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

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To prepare the statement of cash flows using the direct method we ll analyze the changes in various View the full answer