Preparing and Interpreting a Statement of Cash Flows (Indirect Method) Heads Up Company was started several years ago by

[answerhappygod]

Preparing and Interpreting a Statement of Cash Flows (Indirect
Method) Heads Up Company was started several years ago by two
hockey instructors. The company’s comparative balance sheets and
income statement with additional information follow.
Additional Data:
a. Bought new hockey equipment for cash, $500.
b. Borrowed $1,000 cash from the bank during the year.
c. Other expenses included depreciation, $250; rent, $500;
taxes, $500.
d. Accounts Payable includes only purchases of services made on
credit for operating purposes. Because there are no liability
accounts relating to utilities or taxes, assume that these expenses
were fully paid in cash.
Required:
1. Prepare the statement of cash flows for the year ended
December 31, 2012, using the indirect method.
2. Use the statement of cash flows to evaluate the company’s
cash flows.