Presented here are the financial statements of Waterway Company. Assets Cash Accounts receivable Inventory Property, plant,...

  

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Presented here are the financial statements of Waterway Company. Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Waterway Company Comparative Balance Sheets December 31 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 2025 $ 28,000 16,000 22,400 $15,200 5,600 13,600 14,400 2024 48,000 (25,600) (19,200) $88,800 $86,400 40,000 $ 16,000 11,200 16,000 62,400 $ 12,000 6,400 26,400 11,200 30,400 $88,800 $86,400 1. 2. 3. Waterway Company Income Statement For the Year Ended December 31, 2025 Additional data: 4. Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $14,400 4,800 $193.600 140,000 53,600 19,200 34,400 2,400 32,000 6,400 $25,600 Depreciation expense was $14,000. Dividends declared and paid were $16,000. During the year, equipment was sold for $6,800 cash. This equipment originally cost $14,400 and had accumulated depreciation of $7,600 at the time of sale. Bonds were redeemed at their carrying value. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000)) Presented here are the financial statements of Waterway Company. Assets Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total Waterway Company Comparative Balance Sheets December 31 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 2025 $ 28,000 16,000 22,400 $15,200 5,600 13,600 14,400 2024 48,000 (25,600) (19,200) $88,800 $86,400 40,000 $ 16,000 11,200 16,000 62,400 $ 12,000 6,400 26,400 11,200 30,400 $88,800 $86,400 1. 2. 3. Waterway Company Income Statement For the Year Ended December 31, 2025 Additional data: 4. Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $14,400 4,800 $193.600 140,000 53,600 19,200 34,400 2,400 32,000 6,400 $25,600 Depreciation expense was $14,000. Dividends declared and paid were $16,000. During the year, equipment was sold for $6,800 cash. This equipment originally cost $14,400 and had accumulated depreciation of $7,600 at the time of sale. Bonds were redeemed at their carrying value. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000))

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Waterway Company Statement of Cash Flows For the Year Ended December 31 2025 Operat... View the full answer