Soft Touch Company was started several years ago by two golf instructors The company's comparative balance sheets and income statement are presented below, along with additional information. Current Year Previous Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment 9,000 3,900 11,000 $14,160 2,700 12,100 Total Assets Accounts Payable Salaries and Wages Payable Note Payable (long-term) Coneon Stock $25, 520 $21,000 2, 400 1,700 1,000 11,000 4.900 $21,000 s 1,400 1,160 3, 400 11,000 8, 560 $25,520 Total Liabilities and Stockholders' Equity Income Statement $76, 600 70,000 540 2,400 Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income 3.660 Additional Data: a Bought new golf clubs using cash, $1.100 KPrev 3 of 10E Additional Date a Bought new golf clubs using cash, $1,100. b Borrowed $2,400 cash from the bank during the year. 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 Income Tax Expense was fully paid in cash. Required: 1. Prepare the statement of cash flows for the current year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) SOFT TOUCH COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Next >