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.

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

December 31, 2022

For the Year Ended December 31, 2022

For the Quarter Ended December 31, 2022

Select an opening name for section one

Cash at Beginning of Period

Cash at End of Period

Cash Flows from Financing Activities

Cash Flows from Investing Activities

Cash Flows from Operating Activities

Net Cash Provided by Financing Activities

Net Cash Provided by Investing Activities

Net Cash Provided by Operating Activities

Net Cash used by Financing Activities

Net Cash used by Investing Activities

Net Cash used by Operating Activities

Net Decrease in Cash

Net Increase in Cash

Compute free cash flow.(Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)