The 2021 and 2020 balance sheets of Waterside Corporation follow. The 2021 income statement is also provided. Waterside had no noncash investing and financing transactions during 2021. During the year, the company sold equipment for $15,700, which had originally cost $12,800 and had a book value of $11,600. The company did not issue any notes payable during the year but did issue common stock for $29,000. The company purchased plant assets and long-term investments with cash. (Click the icon to view the income statement.) (Click the icon to view the balance sheets.) Requirements 1. Prepare the statement of cash flows for Waterside Corporation for 2021 using the indirect method. 2. Evaluate the company's cash flows for the year. Discuss each of the categories of cash flows in your response. Income Statement A B C 1 Waterside Corporation 2 Income Statement 3 For the Year Ended December 31, 2021 $ 341,000 78,000 $ 263,000 Requirement 1. Prepare the statement of cash flows for Waterside Corporation for 2021 using the indirect method. Prepare the statement one section at a time. (Use parentheses or a minus sign for numbers to be subtracted or for a Waterside Corporation Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2021 4 Sales revenues 5 Less: Cost of goods sold 6 Gross profit Operating Activities: Adjustments to reconcile net income to cash basis: Net cash provided by (used for) operating activities 7 Less operating expenses: 8 Salaries and wages expense $ 26,500 9 Depreciation expense 3,800 10 Other operating expenses 14,000 11 Total operating expenses 44,300 $ 218,700 12 Operating income 13 Plus other income and less other expenses: 14 Interest expense 15 Gain on sale of PP&E 16 Total other income and expenses 17 Income before income taxes 18 Less: Income tax expense 19 Net income $ 9,400 4,100 5,300 $ 213,400 35,500 177,900