Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash $...

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Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash $ 494,000 Provided by (Used for) Operating Activities: Depreciation Expense $ 49,100 Amortization Expense Increase in Short-term Investments Decrease in Office Supplies Decrease in Accounts Receivable Increase in Telephone Payable 220 (31,000) 870 4,000 250 Increase in Wages Payable 2,000 Increase in Interest Payable 300 Increase in Unearned Revenue 500 Increase in Utilities Payable 100 Increase in Merchandise Inventory (500) Decrease in Prepaid Rent 4,000 Increase in Accounts Payable 2,880 32,720 Cash Flows From Investing Activities Net Cash Provided by (Used for) Investing Activities Current Assets Cash Water Way Company Comparative Balance Sheet December 31, 2025 and 2024 Assots Short-term Investments, net Accounts Receivable, not Merchandise Inventory Office Supplies Prepaid Rent Property, Plant, and Equipment Land Building Canoes Office Furniture and Equipment Accumulated Depreciation-PP&E Total Assets Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Liabilities S 2025 2024 1,268,750 $ 7,350 31,000 3,500 7,500 500 0 30 900 0 4,000 240,000 90,000 733,000 308,000 8,640 8,640 160,000 0 (50,425) (1,325) $ 2,394,995 $ 425,065 $ 3,340 $ 460 350 250 510 260 3,200 1,200 14,000 88 Interest Payable 400 100 Unearned Revenue 750 250 Long-Term Liabilities: Notes Payable 5,280 5,280 Mortgage Payable 225,000 0 Bonds Payable 900,000 Discount on Bonds Payable (1,100) 0 Total Liabilities 1,151,730 7,800 Paid-In Capital: Stockholders' Equity Preferred Stock 100,000 0 Paid-In Capital in Excess of Par-Preferred 50,000 0 Common Stock 515,000 415,000 Paid-In Capital in Excess of Par-Common 140,000 438,265 2,265 Retained Earnings Total Stockholders' Equity 1,243,265 417,265 $ Total Liabilities and Stockholders' Equity 2,394,995 $ 425,065 13 1. The income statement for 2025 included the following items: a. Net income, $494,000 b. Depreciation expense for the year, $49,100. c. Amortization on the bonds payable, $220 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $900,000, receiving cash of $898,680. 4. The company distributed 2,000 shares of common stock in a stock dividend when the market value was $14.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations. Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash $ 494,000 Provided by (Used for) Operating Activities: Depreciation Expense $ 49,100 Amortization Expense Increase in Short-term Investments Decrease in Office Supplies Decrease in Accounts Receivable Increase in Telephone Payable 220 (31,000) 870 4,000 250 Increase in Wages Payable 2,000 Increase in Interest Payable 300 Increase in Unearned Revenue 500 Increase in Utilities Payable 100 Increase in Merchandise Inventory (500) Decrease in Prepaid Rent 4,000 Increase in Accounts Payable 2,880 32,720 Cash Flows From Investing Activities Net Cash Provided by (Used for) Investing Activities Current Assets Cash Water Way Company Comparative Balance Sheet December 31, 2025 and 2024 Assots Short-term Investments, net Accounts Receivable, not Merchandise Inventory Office Supplies Prepaid Rent Property, Plant, and Equipment Land Building Canoes Office Furniture and Equipment Accumulated Depreciation-PP&E Total Assets Current Liabilities: Accounts Payable Utilities Payable Telephone Payable Wages Payable Notes Payable Liabilities S 2025 2024 1,268,750 $ 7,350 31,000 3,500 7,500 500 0 30 900 0 4,000 240,000 90,000 733,000 308,000 8,640 8,640 160,000 0 (50,425) (1,325) $ 2,394,995 $ 425,065 $ 3,340 $ 460 350 250 510 260 3,200 1,200 14,000 88 Interest Payable 400 100 Unearned Revenue 750 250 Long-Term Liabilities: Notes Payable 5,280 5,280 Mortgage Payable 225,000 0 Bonds Payable 900,000 Discount on Bonds Payable (1,100) 0 Total Liabilities 1,151,730 7,800 Paid-In Capital: Stockholders' Equity Preferred Stock 100,000 0 Paid-In Capital in Excess of Par-Preferred 50,000 0 Common Stock 515,000 415,000 Paid-In Capital in Excess of Par-Common 140,000 438,265 2,265 Retained Earnings Total Stockholders' Equity 1,243,265 417,265 $ Total Liabilities and Stockholders' Equity 2,394,995 $ 425,065 13 1. The income statement for 2025 included the following items: a. Net income, $494,000 b. Depreciation expense for the year, $49,100. c. Amortization on the bonds payable, $220 2. There were no disposals of property, plant and equipment during the year. All acquisitions of PP&E were for cash except the land, which was acquired by issuing preferred stock. 3. The company issued bonds payable with a face value of $900,000, receiving cash of $898,680. 4. The company distributed 2,000 shares of common stock in a stock dividend when the market value was $14.00 per share. All other dividends were paid in cash. 5. The common stock, except for the stock dividend, was issued for cash. 6. The cash receipt from the notes payable in 2025 is considered a financing activity because it does not relate to operations.