PLEASE USE DIRECT METHOD

Dive In Company was started several years ago by two diving instructors. The company's comparative balance sheets and income statement, as well as additional information, are presented below. Current Year Previous Year $ 5,720 2,800 280 $ 8,800 $ 1,250 3,000 4,550 $ 8,800 $ 6,610 1,400 140 $ 8,150 $ 2,900 Balance Sheet at December 31 Cash Accounts Receivable Prepaid Rent Total Assets Salaries and Wages Payable Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Rent and Office Expenses Net Income 1,900 3,350 $ 8,150 $ 53,750 48,000 4,550 $ 1,200 Additional Data: a. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred. b. An owner contributed capital by paying $1,100 cash in exchange for the company's stock. 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 by a minus sign.) 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 by a minus sign.) DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: 0 Net Cash Provided by Operating Activities Cash Flows Used in Investing Activities: Cash Flows from Financing Activities: 0 El $ 0 DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Balance, December 31 Cash Balance, January 1 Cash Collected from Customers Cash paid for rent and office expenses Cash Flows from Financing Activities: $ DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Balance, December 31 0 Cash Balance, January 1 Cash Collected from Customers Cash paid for rent and office expenses Cash Flows from Financing Activities: 0 HA DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: 0 Cash Balance, December 31 Cash Balance, January 1 Cash Collected from Customers Cash paid for rent and office expenses 0 $ 0 DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: MILLAA..... Cash Balance, December 31 Cash Balance, January 1 Cash Collected from Customers Cash paid for rent and office expenses $ DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: 0 Net Cash Provided by Operating Activities Cash Flows Used in Investing Activities: Cash Flows from Financing Activities: 0 $ 0 Net Decrease in Cash during the Year Net Increase in Cash during the Year DIVE IN COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: 0 Net Cash Provided by Operating Activities Cash Flows Used in Investing Activities: Cash Balance, December 31 Cash Balance, January 1 Cash Collected from Customers Cash paid for rent and office expenses 0 GA 0