Soft Touch Company was started several years ago by two golf instructors. The companys comparative balance sheets and income statement are presented below, along with additional information.

	Current Year			Previous Year
Balance Sheet at December 31
Cash	$	13,520		$	7,500
Accounts Receivable		2,100			3,300
Equipment		11,000			10,000
Accumulated DepreciationEquipment		(2,780	)		(2,300	)
Total Assets	$	23,840		$	18,500
Accounts Payable	$	1,300		$	1,800
Salaries and Wages Payable		920			1,400
Note Payable (long-term)		2,800			1,000
Common Stock		10,000			10,000
Retained Earnings		8,820			4,300
Total Liabilities and Stockholders Equity	$	23,840		$	18,500
Income Statement
Service Revenue	$	73,800
Salaries and Wages Expense		67,000
Depreciation Expense		480
Income Tax Expense		1,800
Net Income	$	4,520

Additional Data:

1. Bought new golf clubs using cash, $1,000.
2. Borrowed $1,800 cash from the bank during the year.
3. 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:
   Cash Flows from Investing Activities:
   Cash Flows from Financing Activities: