CALCULATOR PRINTER VERSION BACK Waterways Continuing Problem 17 (Indirect Method) Waterways prepared the balance sheet and income slatement for the irnigati Additional information: 1. Waterways sold a company vethicle for $24,000. The vehicle had been used for 1U years. It cost s on instullation division for 2020. Now the company also needs to prepare a statement of cash flows for the same division. The ion's Irrigation Installation Division for the years 2019 and 2020 and the income staterrient for the ycar 2020 are presented below. 00. The vehicle hud been used tor 10 years. It cost $8o,700 when purchtased and had a 10-year lteand a $6,100 salvage value Straight inc used. 2. Waterways purchased with cash newe quipment custing $209600 . Prepaid expenses increased by $34,200. All changes in accounts payable relate to inventory purchases WATERWAYS CORPORATION INSTALLATION DIVISION Balance Sheets Deceimber 31 Assets Current assets 2020 2019 Cash Accounts receivable Work in process inventory Prepaid expenses $840,700$739,500 676,700 540,100 699,600 6,700 76,500 2,310,200 42,300 39 100 Total current assets Property, plant, and equipment La Buildings Equinment Furnishings Accumulated depreciation 02.000 450.00 929,501 s0,700 02,000 450,000 40 uO 482,200) 1,110,40 $3,552 800$2,439,800 40,000 479,000) 1,242,600 Total property, plant, and equiprment Total assets Liabilities and Stockholders' Equity Current habilities 5158,200 128, 00 80,400 Accounts payable 110,800 Income taxes payabla Wacies navable 10:43 AM diy 3/19/2019 /\ 4 H to search telra deyyandt, I Accounting Systen Announrte Principles, 13e ncments Wages payable Interest payable Other current liabilities Revolving bank loan payable 4,500 1,200 14,700 15,100 294,500 15,000 Total current liabilities Long-term liabilities 225,500 Note payable 141,000 435,500 Total liabilities 225,500 Stockholders' equity ly Common stock Retained earnings 1250,000 1, 250,000 964,300 3,117,300 2,214,300 $3,552,800 2439,800 1,867,300 Total stockholders' equity Total liabilities and stockholders' equity WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement For the Year Ending December 31, 2020 Cost of goods sold 3,116,700 2,412,800 expense Advertising Salaries and wages Other operating expenses $50,500 398,50 586,800 71,300 21,300 Total operating expenses Income from operations 1/128 400 1 284 400 Other income Gain on sale of equipment Other expenses 17,900 Interest expense Net other income and expenses Income before income tax re to search Neusa Weygandt, Accounting Principles, 13e Helpl Income before income tax Incorme tax expense Net income 1,290,000 387,000 $903,000 RCES (a) Prepare a statement of cash flows using the indirect method for the year 2020. (Show amounts that de ing WATERWAYS CORPORATION-Installation Division Statement of Cash Flows-Indirect Method tudy Adjustments to reconcile net income to here to search Weygandt, Accounting Principles, 13e Help I System Announcements URCES uing rect nuing ystudy|Netloss Decrease in accounts payable Gain on sale of equipment or operating expenses ts receivable e in interest payabl accounts receva ages etle ase in wark in process ase in accounts pay Increase in prepaid expenses Decrease in process 2020. (Enter negative amount using either a negative sign preced lype here to search Weygandt, Accounting Principles, 13e T RESOURCES COMP ys Continuin 17 (Indirect ys Continuing Increase in inventory toss on sale of equipment Decrease in other current liabilities Increase in income taxes payable Purchase of equripment Deprectation expense ore esults by Study Sate of equip ment For interest tee ease ncumetaxes payable Proceeds frors note paysbie Cash collections feom customers To suppiiers Net income 202 (Enisr negative amount using either a negative sign pre Type here to search OMP Continuing (Indirect ults by Study (c) Determine free cash flowr for the year 2020. (Enter hegative amount using either a nega Click if you would like to show Work for this question: Quen Show Wotk Type here to search