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	$	11,580		$	6,000
Accounts Receivable		1,400			2,700
Equipment		11,000			10,000
Accumulated DepreciationEquipment		(2,120	)		(1,700	)
Total Assets	$	21,860		$	17,000
Accounts Payable	$	700		$	1,200
Salaries and Wages Payable		680			1,100
Note Payable (long-term)		2,200			1,000
Common Stock		10,000			10,000
Retained Earnings		8,280			3,700
Total Liabilities and Stockholders Equity	$	21,860		$	17,000
Income Statement
Service Revenue	$	70,200
Salaries and Wages Expense		64,000
Depreciation Expense		420
Income Tax Expense		1,200
Net Income	$	4,580

Additional Data:

1. Bought new golf clubs using cash, $1,000.
2. Borrowed $1,200 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.)