Question 1 Waterways prepared the balance sheet and income statement for the irrigation installation division for 2020. Now the company also needs to prepare a statement of cash flows for the same The comparative balance sheets for Waterways Corporation's Irrigation Installation Division for the years 2019 and 2020 and the income statement for the year 2020 are presented below. Additional information: 1. Waterways sold a company vehicle for $24,000. The vehicle had been used for 10 years. It cost $80,200 when purchased and had a 10-year life and a $5,900 salvage value. Straight-line depreciation was used. 2. Waterways purchased with cash new equipment costing $208,800. 3. Prepaid expenses increased by $32,900. All changes in accounts payable relate to inventory purchases. WATERWAYS CORPORATION-INSTALLATION DIVISION Balance Sheets December 31 Assets 2020 2019 Current assets Cash $831,600 $750,700 Accounts receivable 684,300 542,100 Work in process 699,700 Inventory 17,000 7,400 Prepaid expenses 75,900 43,000 Total current assets 308,500 1,343,200 Property, plant, and equipment Land 300,000 300,000 Buildings 451,000 451,000 Equipment 928,600 800,000 Furnishings 40,600 40,600 Accumulated depreciation (479,500) (480,700) Total property, plant, and equipment 1,240,700 1,110,900 Total assets $3,549,200 $2,454,100 Liabilities and Stockholders' Equity Current abilities Accounts payable $157,000 $127,600 Income taxes payable 100,900 79,700 Wages payable 4,600 2,000 Interest payable 1,200 14.700 Cash flows from investing activities Cash flows from investing activities $ (c) Determine free cash flow for the year 2020. (Enter negative amount using either a negative sign preceding the number e.g. -45 or Free cash flow $ (15,000).) WATERWAYS CORPORATION-Installation Division Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments to reconcile net income to