Question
Here are comparative balance sheets for Waterway Company. WATERWAY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $93,440 $28,160 Accounts receivable 111,360 97,280
Here are comparative balance sheets for Waterway Company. WATERWAY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $93,440 $28,160 Accounts receivable 111,360 97,280 Inventories 217,600 244,480 Land 92,160 128,000 Equipment 332,800 256,000 Accumulated depreciation(84,480) (40,960) Total $762,880 $712,960 Liabilities and Stockholders Equity Accounts payable $47,360 $60,160 Bonds payable 192,000 268,800 Common stock ($1 par) 276,480 222,720 Retained earnings 247,040 161,280 Total $762,880 $712,960 Additional information: 1. Net income for 2022 was $128,000. 2. Cash dividends of $42,240 were declared and paid. 3. Bonds payable amounting to $76,800 were redeemed for cash $76,800. 4. Common stock was issued for $53,760 cash. 5. Equipment that cost $64,000 and had a book value of $38,400 was sold for $46,080 during 2022; land was sold at cost. Prepare a statement of cash flows for 2022 using the indirect method. Compute free cash flow for 2022. Free cash flow for 2022
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