Comparative balance sheet accounts of Waterway Inc. are presented below. WATERWAY INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42.400 $33,900 Accounts Receivable 70.600 60,300 Inventory 30.100 24,100 Equity investments 22.000 38,900 Machinery 30,300 18,700 Buildings 67.900 55,700 Land 7,600 7,600 $270,900 $239.200 Credit Accounts Allowance for Doubtful Accounts $2.300 $1,500 Accumulated Depreciation-Machinery 5,600 2.200 Accumulated Depreciation-Buildings 13,500 8,900 Accounts Payable 34,700 24,500 Accrued Payables 3,500 2.600 Long-Term Notes Payable 21.000 30,800Common Stock, no-per 150.000 125,000 Retained Earnings 40,300 43,700 $270.900 $239,200 Additional date (ignoring taxes): 1. Net income for the year was $43,000. 2. Cash dividends declared and paid during the year were $21,400. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 2096) that cost $24.700 were sold during the year for $28,400. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. Waterway's 2020 income statement follows (ignoring taxes). Sales revenue $540,400 Less: Cost of goods sold 381,000 Gross margin 159.400 Less: Operating expenses (includes $8.750 depreciation and $5,042 bad debts) 119,300 Income from operations 40.100 Other: Gain on sele of investments $3,700 Loss on sale of machinery (800 2,900 Net income $43,000