Presented below are the financial statements ofWaterway Industries.

Waterway Industries

Comparative Balance Sheets

December 31

Assets

2022

2021

Cash$101,500

$58,000

Accounts receivable58,000

40,600

Inventory81,200

58,000

Property, plant, and equipment174,000

226,200

Accumulated depreciation(92,800

)

(69,600

)

Total$321,900

$313,200

Liabilities and Stockholders' Equity

Accounts payable$55,100

$43,500

Income taxes payable20,300

23,200

Bonds payable49,300

95,700

Common stock52,200

40,600

Retained earnings145,000

110,200

Total$321,900

$313,200

Waterway Industries

Income Statement

For the Year Ended December 31, 2022

Sales revenue

$701,800

Cost of goods sold507,500

Gross profit194,300

Selling expenses$52,200

Administrative expenses17,400

69,600

Income from operations124,700

Interest expense8,700

Income before income taxes116,000

Income tax expense23,200

Net income$92,800

Additional data:

1.Depreciation expense was $50,750.2.Dividends declared and paid were $58,000.3.During the year equipment was sold for $24,650cash. This equipment cost $52,200originally and had accumulated depreciation of $27,550at the time of sale.

Part 1

Prepare a statement of cash flows using the indirect method.