The comparative balance sheets for Waterway Company as of December 31 are as follows.AssetsCashAccounts receivableInventoryPrepaid expensesLandBuildingsAccumulated depreciation-buildingsEquipmentAccumulated depreciation-equipmentTotalWATERWAY COMPANYComparative Balance SheetsDecember 31Liabilities and Stockholders' EquityAccounts payableBonds payableCommon stock, $1 parRetained earningsTotal2022$58,90040,800151,60013,900144,200199,200(58,700)231,300(43,300)$737,900$46,400260,000192,300239,200$737,9002021$46,10063,600142,50021,600130,100199,200(34,100)157,700(35,000)$691,700$39,800260,000158,200233,700$691,700 Additional information:1.2.3.4.5.6.Operating expenses include depreciation expense of $42,000 ($24,600 of depreciation expense for buildings and $17,400 forequipment).Land was sold for cash at book value.Cash dividends of $40,500 were declared and paid.Net income for 2022 was $46,000.Equipment was purchased for $95,400 cash. In addition, equipment costing $21,800 with a book value of $12,700 was soldfor $5,700 cash.34,100 shares of $1 par value common stock were issued in exchange for land with a fair value of $34,100.Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cashflow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).)Adjustments to reconcile net income toWATERWAY COMPANYStatement of Cash Flows$$

In this question, we need to prepare Statement of cash flows for the year ended December 31, 2022 using indirect method for cash flows from operating activities. While preparing operating activities section of statement of cash flow using indirect method, the net income is adjusted for the effect of non cash items in the income statement and changes in current assets and liabilities during the year.Statement of Cash Flows along with supporting calculation is as below. You may kindly note that: All amounts are in $. Decrease in current assets and increase in current liabilities will result in increase in cash flow. Increase in current assets and decrease in current liabilities will result in decrease in cash flow (will be shown with a - sign). Happy Reading

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The comparative balance sheets for Waterway Company as of December 31 are as follow Assets Cash WATERWAY COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total 2022 $58,900 40,800 151,600 13,900 144,200 199,200 (58,700) 231,300 (43,300) $737,900 $46,400 260,000 192,300 239,200 $737,900 2021 $46,100 63,600 142,500 21,600 130,100 199,200 (34,100) 157,700 (35,000) $691,700 $39,800 260,000 158,200 233,700 $691,700

The comparative balance sheets for Waterway Company as of December 31 are as follow Assets Cash WATERWAY COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings Total 2022 $58,900 40,800 151,600 13,900 144,200 199,200 (58,700) 231,300 (43,300) $737,900 $46,400 260,000 192,300 239,200 $737,900 2021 $46,100 63,600 142,500 21,600 130,100 199,200 (34,100) 157,700 (35,000) $691,700 $39,800 260,000 158,200 233,700 $691,700

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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