(Solved): Can you please prepare the Statement Cash Flows  using the Indirect and Direct Method. Thank ...

Can you please prepare the Statement Cash Flows  using the Indirect and Direct Method. Thank you.

PA12-4 Preparing and Interpreting a Statement of Cash Flows (Indirect Method) Heads Up Company was started several years ago by two bockey instructon. The company's comparative balance shocts and income statement follow, along with additional information. Additional Data: a. Bought new bockey equipment for cash. \( \$ 500 \). b. Borrowed \( \$ 1,200 \) sash 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 incocne 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. 2. Use the statement of cash flows to evaluate the coenpany's cash flows.