mework Chapter 5 - /1 E Question 6 of 6 Current Attempt Progress The comparative balance sheets of Waterway Corporation at the beginning and end of the year 2020 appear below. Jan. 1. 2020 Inc./Dec. WATERWAY CORPORATION BALANCE SHEETS Dec 31, 2020 Assets Cash $21,680 Accounts receivable 107,680 Equipment 40,680 Less: Accumulated Depreciation Equipment (17,000) Total $153,040 Liabilities and Stockholders' Equity Accounts payable $21,680 Common stock 101.680 Retained earnings 29.680 Total $153,040 $14,700 89,700 23,700 (11.000) $117.100 $6,980 Inc. 17,980 Inc. 16,980 Inc. 6.000 Inc $16,700 81.700 18,700 $117.100 4.980 Inc. 19.980 Inc. 10.980 Inc. Net income of $45.680 was reported and dividends of $34,700 were paid in 2020. New equipment was purchased and none was sold. Prepare a statement of cash flows for the year 2020. (Show amounts that decrease cash flow with either a - signes. -15,000 or in parenthesis es. (15,000 WATERWAY CORPORATION -/1 E Question 6 of 6 Prepare a statement of cash flows for the year 2020. (Show amounts that decrease cash flow with elther a signes. - 15,000 or in parenthesis es. (15,0001) WATERWAY CORPORATION Statement of Cash Flows Adjustment to reconcile net income to - /1 E Question 6 of 6 Compute the current ratio (current assets + current liabilities) as of January 1, 2020, and December 31, 2020. (Round ratios to 1 decimal place, es. 4.5.) December 31, 2020 January 1, 2020 Current ratio Compute free cash flow for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis eg. (15,000)) Free Cash Flow e Textbook and Media In light of the analysis in (part b), comment on Waterway's liquidity and financial flexibility, Waterway company has liquidity and financial flexibility e Textbook and Media