A comparative balance sheet for Waterway Corporation is presented below: WATERWAY CORPORATION Comparative Balance Sheet Assets Cash Accounts receivable (net) Prepaid insurance Land Equipment Accumulated depreciation Total assets Accounts payable Bonds pavable 2020 $43,500 73.750 28,750 20,500 72,500 (23,750) $215.250 Liabilities and Stockholders' Equity $14.750 29.500 2019 $33,500 62,500 19.500 51,250 62,500 (15,500) $213,750 $8.500 21,500

Accounts payable Bonds payable Common stock Retained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity $14,750 29.500 147,500 23,500 $215,250 $8.500 21.500 117.500 66.250 $213.750 Additional information: 1. 2 3. 4 5 Net loss for 2020 is $26.250. Cash dividends of $16,500 were declared and paid in 2020. Land was sold for cash at a loss of $6,500. This was the only land transaction during the year. Equipment with a cost of $20,000 and accumulated depreciation of $12,500 was sold for $7,500 casl $24,500 of bonds were retired during the year at carrying (book) value.

Additional information: 1. Net loss for 2020 is $26,250. 2. Cash dividends of $16,500 were declared and paid in 2020. 3. Land was sold for cash at a loss of $6,500. This was the only land transaction during the year. Equipment with a cost of $20,000 and accumulated depreciation of $12,500 was sold for $7,500 cash. $24,500 of bonds were retired during the year at carrying (book) value. Equipment was acquired for common stock. The fair value of the stock at the time of the exchange was $30,000. Prepare a statement of cash flows for the year ended 2020, using the indirect method. (Show amounts that decrease cash

WATERWAY CORPORATION Statement of Cash Flows