Swing It, Inc., was started several years ago by two tennis instructors. The company's comparative balance sheets and income statement follow, along with additional information Current Previous Year Year Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation Equipment $ 6,140 3,680 1,590 4,200 1,340)(1,170) 820 4,620 $10,240 $8,300 Accounts Payable Salaries and Wages Payable Note Payable (long-term) Common Stock Retained Earnings $ 580 $1,000 750 500 4,200 1,850 580 1,700 4,200 3,180 $10,240 $8,300 Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense $41,100 38,600 170 1,000 Net Income $ 1,330 Additional Data a. Bought new tennis equipment for cash, $420 b. Borrowed $1,200 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.)