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Presented here are the financial statements of Waterway Company. Part A) Prepare a statement of cash flows using the indirect method. Part B) Compute free
Presented here are the financial statements of Waterway Company.
Part A) Prepare a statement of cash flows using the indirect method.
Part B) Compute free cash flow.
WATERWAY COMPANY Comparative Balance Sheets December 31 Assets Cash 2022$37,1002021$21,000 Accounts receivable Inventory Property, plant, and equipment Liabilities and Stockholders' Equity Accounts payable Income taxes payable $28,0007,500$16,7008,500 Bonds payable 27,70033,300 Common stock 18,30014,400 Retained earnings Total WATERWAY COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Additional data: 1. Depreciation expense was $15,700. 2. Dividends declared and paid were $25,100. 3. During the year, equipment was sold for $8,800 cash. This equipment originally cost $18,200 and had accumulated depreciation of $9,400 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. 100Step by Step Solution
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