The following are Waterway Corp's comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS Increase 2020 2019 (Decrease) Cash $806,900 $700,900 $106,000 Accounts receivable 1,131,700 1,159,400 (27,700) Inventory 1,842,900 1,730,100 112,800 Property, plant, and equipment 3,300,200 2,968,200 332,000 Accumulated depreciation (1,173,600) (1,037,600 (136,000) Investment in Myers Co. 307,300 277,000 30,300 Loan receivable 247,500 247,500 Total assets $6,462,900 $5,798,000 $664,900 $950.800 50,200 100,500 $70,100 (20,200) (20,000) 392,000 Accounts payable Income taxes payable Dividends payable Lease liabililty Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,020,900 30,000 80,500 392,000 500.000 1,489,000 2,950,500 $6,462.900 500,000 1,489,000 2,707,500 $5,798,000 243,000 $664,900 Additional information: 1. 2. 3. 4. On December 31, 2019, Waterway acquired 25% of Myers Co's common stock for $277,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,108,000. Myers reported income of $121,200 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. During 2020, Waterway loaned $291,600 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $44,100, plus interest at 10%, on December 31, 2020. On January 2, 2020, Waterway sold equipment costing $60,000, with a carrying amount of $38,100, for $40,400 cash. On December 31, 2020, Waterway entered into a capital lease for an office building. The present value of the annual rental payments is $392,000, which equals the fair value of the building. Waterway made the first rental payment of $59,900 when due on January 2, 2021. Net income for 2020 was $323,500. Waterway declared and paid the following cash dividends for 2020 and 2019. 5. 6. Declared Paid Amount 2020 December 15, 2020 February 28, 2021 $80,500 2019 December 15, 2019 February 28, 2020 $100,500 Prepare a statement of cash flows for Waterway Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a-signeg.-15,000 or in parenthesises (15,000).) WATERWAY CORP. Statement of Cash Flows Adjustments to reconcile net income to > > > > >