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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	$	3,500			$	3,900
Accounts receivable		1,200				1,000
Prepaid expenses		100				150
Equipment		500				0
	$	5,300			$	5,050
Wages payable	$	550			$	1,000
Contributed capital		1,700				1,300
Retained earnings		3,050				2,750
	$	5,300			$	5,050
Income Statement for Current Year
Lessons revenue	$	36,450
Wages expense		32,000
Other expenses		4,150
Net income	$	300
Additional Data: Prepaid expenses relate to rent paid in advance. Other expenses were paid in cash. Purchased equipment for $500 cash at the end of the prior year to be used starting in current year. An owner contributed capital by paying $400 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.) Bottom of Form Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Cash flows from investing activities: Cash flows from financing activities:

expenses Equipment 500 5,300 550 1,700 3,050 5,300 5,050 1,000 1,300 2,750 5,050 payable Contributed capital Retained earnings Income Statement for Current Year Lessons revenue 0 expense Other expenses Net income 36,450 32,000 4,150 300