Question
Please answer and I will cast a vote. Thank you! Waterway Industries has recently decided to go public and has hired you as an independent
Please answer and I will cast a vote. Thank you!
Waterway Industries has recently decided to go public and has hired you as an independent CPA One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Waterway Industries for 2022 and 2021 are provided below. BALANCE SHEETS Cash Accounts receivable Inventory Property, plant and equipment Less accumulated depreciation Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $610000 (322000 12/31/22 $410000 358000 383000 288000 $1439000 $ 176000 354000 361000 194000 354000 $1439000 $8410000 7151000 1259000 789000 470000 70000 400000 100000 $ 300000 $962000 (303000 12/31/21 $ 190000 217000 481000 659000 $1547000 $ 95000 392000 600000 215000 245000 $1547000 INCOME STATEMENT For the Year Ended December 31, 2022 Sa les revenue Cost of sales Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before taxes Income taxes Net income The following additional data were provided: $598000 191000 1. 2. 3. Dividends for the year 2022 were $191000. During the year, equipment was sold for $242000. This equipment cost $354000 originally and had a book value of $288000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. All depreciation expense is in the selling expense category. The net cash provided by operating activities is 0$216000. O $254000. SUPPORT O $431000. O $300000.
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