oft touch company was sta + haps ewcornect Problems (Static) Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate Sot Touch Company was started several years ago by two golf instructors The company's comparative balance statement are presented below, along with additional information was started several years ago by two golf instructors The company's comparative balance sheets and income Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipeent $13,s80 2,500 11,888 s 8,000 3,500 10,000 (3,800)(2,5ee) Total Assets Accounts Payable Salaries and Hages Payable Note Payable (long-term) Common Stock 524,800 $19,000 1,000 1,880 3,000 10,000 2,0e0 1,580 1,000 18,009 4, 500 $19,600 Total Liabilities and Stockholders" Equity $24 ,000 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense iet Incone $75,000 68,000 500 s 4, 5e0 Additionel Dete 96 2 5 Check my work mode: This shows whet is correct or incorrect for the work you have completed so fer. It does no Additional Dete: a Bought new golf clubs for $3,000 cash and sold existing clubs for $1,000 cash. The clubs that were sold had cost $2,000 and had Accumulated Depreciation of $500 at the time of sale b Borrowed $2.000 cash from the bank during the year C Accounts Payable ludes only urchases of services made on credit for operating poses. Because there are no attity u Required; the 1 Prepare the statement of cash flows for the year ended December 31 using the indirect be indiceted with a minus sign.) method (Amounts to be deducted should O Answer is not complete. SOFT TOUCH COMPANY Statement of Cash Flows Cash Flows from Operating Activisies duntments to Recondle Net ncome to Net Cash Provided by Openating Activies Depreciation Expense 1,000 1000 Decrease in 3 5 6 8 5 Operating Activities Depreciation Expense Decrease in Accounts Receivable Decrease in Accounts Payable Decrease in Salaries and Wages Payable 1,000 1,000 (1.000) (500) Net Cash Provided by Operating Activities 5,000 Cash Flows from Investing Activities Cash Payments to Purchase Equigment Net Cash Used in Investing Adtivities (3,000) Cash Flows from Financing Activilies Cash Proceeds from Bank Loan 2,000 Net Cash Provided by Financing Adtivities Net Increase in Cash during the Year Cash Balance January1 Cash Balance December 31 2,000 4000 8 000 12.000 5 6