Dive In Company was started several years ago by two diving instructors. The company’s comparative balance sheets and income statement, as well as additional information, are presented below.

Current Year Previous Year
Balance Sheet at December 31
Cash $ 4,740 $ 5,595
Accounts Receivable 2,100 1,050
Prepaid Rent 210 105
Total Assets $ 7,050 $ 6,750

Salaries and Wages Payable $ 900 $ 2,200
Common Stock 2,300 1,550
Retained Earnings 3,850 3,000
Total Liabilities and Stockholders’ Equity $ 7,050 $ 6,750

Income Statement
Service Revenue $ 46,050
Salaries and Wages Expense 41,000
Rent and Office Expenses 4,200
Net Income $ 850

Additional Data:

A. Rent is paid in advance each month, and Office Expenses are paid in cash as incurred.
B. An owner contributed capital by paying $750 cash in exchange for the company’s stock.

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 by a minus sign.)

The screenshot provided shows what the statement of cash flow should look like and a better look of the question.