Waterway Industries has recently decided to go public and has hired you as an independent CPA....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Waterway Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Waterway Industries for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 Cash $406000 Accounts receivable 358000 Inventory 385000 12/31/21 $191000 218000 481000 Property, plant and equipment $607000 $961000 Less accumulated depreciation (321000) 286000 (306000 ) 655000 $1435000 $1545000 Accounts payable $175000 $94000 Income taxes payable 350000 393000 Bonds payable 361000 602000 Common stock 221500 215000 Retained earnings 327500 241000 $1435000 $1545000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales $8390000 7153000 Gross profit 1237000 Selling expenses $601000 Administrative expenses 192000 793000 Income from operations 444000 Interest expense 74000 Income before taxes Income taxes Net income 370000 92500 $277500 The following additional data were provided: 1. Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $238000. This equipment cost $353000 originally and had a book value of $286000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided by operating activities is $401500. $229500. O $277500. $186500. Waterway Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Waterway Industries for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 Cash $406000 Accounts receivable 358000 Inventory 385000 12/31/21 $191000 218000 481000 Property, plant and equipment $607000 $961000 Less accumulated depreciation (321000) 286000 (306000 ) 655000 $1435000 $1545000 Accounts payable $175000 $94000 Income taxes payable 350000 393000 Bonds payable 361000 602000 Common stock 221500 215000 Retained earnings 327500 241000 $1435000 $1545000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales $8390000 7153000 Gross profit 1237000 Selling expenses $601000 Administrative expenses 192000 793000 Income from operations 444000 Interest expense 74000 Income before taxes Income taxes Net income 370000 92500 $277500 The following additional data were provided: 1. Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $238000. This equipment cost $353000 originally and had a book value of $286000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided by operating activities is $401500. $229500. O $277500. $186500.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Use f(x) and g(x) to find a formula for each expression. Identify its domain. (a) (f + g)(x) (c) (fg)(x) (b) (f- g)(x) (d) (f/g)(x)
-
The graph shows a flexible budget line with some missing data. Fill in the missing amounts for (a) and (b). Operating Profit ($) Flexible Budget ne Flexible Budget Operating Profit - $192,000 Master...
-
What generally determines how firms are listed in a tombstone advertisement?
-
Describe or define the four basic financial statements: 1. Income statement 2. Balance sheet 3. Statement of shareholders equity 4. Statement of cash flow Discuss how the four statements are...
-
Camp Manufacturing turns over its inventory eight times each year, has an average payment period of 35 days, and has an average collection period of 60 days. The firms annual sales are $3.5 million....
-
16. MT makes small camping and snowmobile trailers. The demand for camping trailers occurs between January and June (mostly in April and May). MT makes camping trailers from January to June, shuts...
-
ABC Company purchased a building on January 1, 2025 at a cost of $230,000. ABC estimated that the building would have a useful life of 10 years and a residual value of $10,000. Assuming ABC Company...
-
Draw the break-even chart to shows the fixed cost, break-even point, break-even output, break-even revenues, the margin of safety, areas of losses and areas of profits for Product X, Y and Z based in...
-
As of the end of 2021, RightCo Inc, a C corporation has accumulated E&P of $3,500,000. The balance sheet shows, among other things, that RightCo has: Cash of $1,000,000 Investment in a 51% owned...
-
Put the equation x + 3 = 2(y - 2) in a standard form. X- I y= i
-
What is a Budget, why are they created and what period does it usually cover? What is a Perpetual Budget? Briefly explain the concepts of Planning and Control What is a Master Budget and how does it...
-
Example: m = 1.0 kg A U=5.0m/s y=0 r=2.0m granthera 11=3.0m- k=SOON/m www D C Xmax If m is shot down with an initial speed of 5.0 m/s at the beginning of a quarter of a circular path as shown above,...
-
A 57.0-kg boy and his 38.0-kg sister, both wearing roller blades, face each other at rest. The girl pushes the boy hard, sending him backward with a velocity 2.60 m/s toward the west. Ignore...
-
A container holds 2.0 mol of gas. The total average kinetic energy of the gas molecules in the container is equal to the kinetic energy of an 8.0 10-3-kg bullet with a speed of 770 m/s. What is the...
-
When interim financial statements are being prepared, why is it that the balance sheet accounts are not restated to correspond to the time period being covered?
-
Discuss several limitations of the income statement.
-
Briefly describe the content of the notes that accompany financial statements.
Study smarter with the SolutionInn App