Swing It, Inc., was started several years ago by two tennis instructors. The companys comparative balance sheets and income statement follow, along with additional information.

Additional Data:

a.

Bought new tennis equipment for cash, $490.

b.

Borrowed $1,100 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 this 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.)

Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment $ 6,180 $4,160 1,730 5,390 4,900 (1,480 (1,240) 890 $10,980 $9,550 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 710 $1,200 750 500 4,900 3,260 2,200 510 1,600 4,900 $10,980 $9,550 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense ncome Tax Expense $39,700 37,200 240 1,200 Net Income $ 1,060