2.

Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,810 $1,120 Receivables 1,790 1,330 Inventory 1,570 1,940 Plant assets 1,870 1,740 (1.230) (1,150) Accumulated depreciation Long-term investments (held-to-maturity) 1,300 1,440 $7,110 $6,420 Accounts payable $1,220 $910 Accrued liabilities 200 260 Bonds payable 1,370 1,550 Common stock 1,860 1,740 Retained earnings 2,460 1,960 $7,110 $6,420 WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,810 Cost of goods sold 4,680 Gross margin 2.130 Selling and administrative expenses 920 Income from operations 1.210 Other revenues and gains Gain on sale of investments 80 Income before tax 1,290 Income tax expense 530 Net income 760 Cash dividends 260 Income retained in business $500 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. 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 e.g. (15,000).) Statement of Cash Flows (Indirect Method) $ Cash at Beginning of Period A Cash at End of Period $ Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash Noncash Investing and Financing Activities V A > >