Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and incomestatement follow, along with additional information.Current YearPrevious YearBalance Sheet at December 31$ 3,9201,6104,300Cash$ 6,060Accounts ReceivableEquipmentAccumulated Depreciation-Equipment8304,730(1,180)$ 8,650(1,360)Total Assets$10,260$ 1,200750Accounts Payable$770Salaries and Wages PayableNote Payable (long-term)Common Stock5701,6005004,3003,0204,3001,900Retained EarningsTotal Liabilities and Stockholders' Equity$10,260$ 8,650Income StatementService Revenue$40,90038,400Salaries and Wages ExpenseDepreciation ExpenseIncome Taх Еxpense1801,200Net Income$ 1,120Additional Data:a. Bought new hockey equipment for cash, $430.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 liabilityaccounts 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 deductedshould be indicated with a minus sign.)HEADS UP COMPANYStatement of Cash FlowsFor the Year Ended December 31Cash Flows from Operating Activities:Adjustments to Reconcile Net Income to Net Cash Provided byOperating Activities:Changes in current assets and current liabilities:Cash Flows from Investing Activities:Cash Flows from Financing Activities:

In this question we have to calculate the cash flow by indirect method cash flow helps in…

Answered: tement follow, along with additional…

Business

Accounting

tement follow, along with additional into alance Sheet at December 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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