Problem #3 (10 Points) - Part A Comparative Balance Sheet Data for Waves Incorporated for two recent years appear below: Waves Incorporated Balance Sheets For the Years Ended December 31, 2019 and 2018 Assets 2019 2018 Increase (Decrease) + Cash Accounts receivable Inventory Prepaid expense Land Buildings Accumulated depreciation Patents (net) $108,000 34,000 70,000 16,000 400,000 320,000 (182,000) 42.000 $808,000 $84,000 160,000 60,000 20,000 300,000 260,000 (140,000) 50,000 $794.000 24,000 (126,000) 10,000 (4,000) 100,000 60,000 42,000 (8,000) Total assets Liabilities and Equity Accounts payable Accrued liabilities Bonds payable Common stock, $10 par Retained earnings $148,000 120,000 200,000 216,000 124.000 $808,000 $174,000 150,000 280,000 116,000 74,000 $794,000 (26,000) (30,000) (80,000) 100,000 50,000 Total Liabilities and Equity 2. 3. 4. Additional data: THE ITEMS BELOW ARE PROPERLY REFLECTED IN THE BALANCE SHEETS ABOVE 1. Land was acquired by issuing common stock, $100,000. Net income for the period was calculated to be $60,000. Cash dividends were declared and paid $10,000. Amortization of the patent for the year, $8,000. Retired bonds payable for $80,000. Purchased a building for $60,000. Depreciation on the building for the year. $42,000. Required: Prepare a Statement of Cash Flows for 2019 using the Indirect Method. Show all work on the next page and use the format provided!! 5. 6. 7. 6 Operating Activities: Adinstments to Net Income to Convert to Cash Basis: $ Net Cash Flow from Operating Activities Investing Activities Net Cash by Investing Activities Financing Activities $ Net Cash by Financing Activities $ Net in Cash Add: Beginning Cash Balance + 84.000 Ending Cash Balance $_108.000 Schedule of Noncash Investing and Financing Activities (Continued)