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Exercise 23-17 (Part Level Submission) Waterway Inc., had the following condensed balance sheet at the end of opera WATERWAY INC. BALANCE SHEET DECEMBER 31, 2016

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Exercise 23-17 (Part Level Submission) Waterway Inc., had the following condensed balance sheet at the end of opera WATERWAY INC. BALANCE SHEET DECEMBER 31, 2016 Cash $8,600 Current liabilities Current assets other than cash 29,200 Long-term notes payable Equity investments 19,900 Bonds payable Plant assets (net) 66,800 Common stock Land 40,400 Retained earnings $164,900 $15,200 25,600 25,000 75,000 24,100 $164,900 During 2017, the following occurred. 1. A tract of land was purchased for $8,900. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,400 were paid to stockholders. $164,900 During 2017, the following occurred. 1. A tract of land was purchased for $8,900. 2. Bonds payable in the amount of $15,000 were redeemed at par. 3. An additional $10,000 in common stock was issued at par. 4. Dividends totaling $9,400 were paid to stockholders. 5. Net income was $30,300 after allowing depreciation of $13,700. 6 Land was purchased through the issuance of $22,800 in bonds. 7. Waterway Inc. sold part of its investment portfolio for $12,900. This transaction resulted in a gain of $1,900 for the company. No unrealized gains or losses were recorded on these investments in 2017. 8. Both current assets (other than cash) and current liabilities remained at the same amount. (a) Your answer is correct. Prepare a statement of cash flows for 2017 using the indirect method. (Show amounts that decrease cash Flau sarith aithar cinn A -16 Ann Arin Aranthacie (15 nnn WATERWAY INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities J 30300 | Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities 1 Depreciation Expense 13700 T Gain on Sale of Investments I (1900) 11800 Net Cash Provided by Operating Activities 42100 Cash Flows from Investing Activities Issuance of Common Stock Net Cash Used by Financing Activities (14400) Net Increase in Cash 31700 8600 Cash at Beginning of Period Cash at End of Period at End of Period 40300 Noncash Investing and Financing Activities Issuance of Bonds for Land 22800 Click if you would like to Show Work for this question: Open Show Work WATERWAY INC. Balance Sheet Assets Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Click if you would like to Show Work for this question: Open Show Work

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