Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and i

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Heads Up Company Was Started Several Years Ago By Two Hockey Instructors The Company S Comparative Balance Sheets And I 1 (47.94 KiB) Viewed 9 times

Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Income Tax Expense Net Income Additional Data: a. Bought new hockey equipment for cash, $400. b. Borrowed $1,100 cash from the bank during the year. HEADS UP COMPANY Statement of Cash Flowe For the Year Ended December 31 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Current Year Cash Flows from Financing Activities: $ 6,000 808 4,408 (1,380) $ 9,908 $ $ 808 608 1,600 4,000 2,908 $ 9,900 $ 41,500 39,000 158 1,200 $ 1,150 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 direct method. (Amounts to be deducted should be Indicated with a minus sign.) 0 Previous Year 0 $ 3,800 1,550 4,000 (1,150) $ 8,200 0 $ 1,200 758 500 4,000 1,750 $ 8,200