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	$	11,620		$	6,250
Accounts Receivable		1,600			2,800
Equipment		12,300			12,000
Accumulated DepreciationEquipment		(1,790	)		(1,800	)
Total Assets	$	23,730		$	19,250
Accounts Payable	$	800		$	1,300
Salaries and Wages Payable		720			1,150
Note Payable (long-term)		2,300			1,000
Common Stock		12,000			12,000
Retained Earnings		7,910			3,800
Total Liabilities and Stockholders Equity	$	23,730		$	19,250
Income Statement
Service Revenue	$	70,800
Salaries and Wages Expense		64,500
Depreciation Expense		660
Loss on Disposal of Equipment		330
Income Tax Expense		1,200
Net Income	$	4,110

Additional Data:

1. Bought new golf clubs for $2,300 cash and sold existing clubs for $1,000 cash. The clubs that were sold had cost $2,000 and had Accumulated Depreciation of $670 at the time of sale.
2. Borrowed $1,300 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 year ended December 31 using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)