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

Partially correct answer icon

Your answer is partially correct.

Prepare a statement of cash flows using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Waterway Industries

Statement of Cash Flows

Choose the accounting period

The current sections ofSage Hill Inc.'s balance sheets at December 31, 2021 and 2022, are presented here.Sage Hill Inc.'s net income for 2022 was $292,100. Depreciation expense was $48,300.

2022

2021

Current assetsCash$71,300

$102,350

Accounts receivable97,750

79,350

Inventory89,700

71,300

Prepaid expenses19,550

21,850

Total current assets$278,300

$274,850

Current liabilitiesAccrued expenses payable$6,900

$18,400

Accounts payable101,200

82,800

Total current liabilities$108,100

$101,200

Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Sage Hill Inc.

Partial Statement of Cash Flows