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Waterway Industries reported the following information for 2017. Waterway Industries Comparative Balance Sheets December 31 Assets 2016 $36,180 22,100 -0- Cash Accounts receivable Inventory Prepaid
Waterway Industries reported the following information for 2017. Waterway Industries Comparative Balance Sheets December 31 Assets 2016 $36,180 22,100 -0- Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals 2017 $59,450 61,440 44,020 5,980 55,070 200,000 (20,880) 181,530 (27,930) $558,680 3,980 70,560 200,000 (13,920) 67,740 (10,060) $376,580 Change Increase/Decrease $23,270 Increase 39,340 Increase 44,020 Increase 2,000 Increase 15,490 Decrease -0- 6,960 Increase 113,790 Increase 17,870 Increase $42,850 0 99,940 228,820 187,070 $558,680 $39,930 10,030 150,020 59,470 117,130 $376,580 $2,920 Increase 10,030 Decrease 50,080 Decrease 169,350 Increase 69,940 Increase Waterway Industries Income Statement For the Year Ended December 31, 2017 Sales revenue $941,320 Cost of goods sold $474,970 Operating expenses 231,190 Interest expense 12,110 Loss on disposal of equipment 2,000 720,270 Income before income taxes 221,050 Income tax expense 65,530 Net income $155,520 Additional information: 1. Operating expenses include depreciation expense of $40,110. 2. Land was sold at its book value for cash. 3. Cash dividends of $85,580 were declared and paid in 2017. Equipment with a cost of $165,130 was purchased for cash. Equipment with a cost of $51,340 and a book value of $36,060 4. was sold for $34,060 cash. 5. Bonds of $50,080 were redeemed at their face value for cash. 6. Common stock ($1 par) of $169,350 was issued for cash. Waterway Industries Statement of Cash Flows-Indirect Method Cash Flows from Operating Activities Net Income $ Adjustments to reconcile net income to 4 $ Depreciation Expense Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Decrease in Accounts Payable Net Income Cash Flows from Operating Activities 4 A Sale of Equipment Net Cash used by Investing Activities Cash Flows from Financing Activities Payment of Dividends Sale of Common Stock Redemption of Bonds Net Cash used by Financing Activities 4 Net Increase in Cash Cash at Beginning of Period Cash at End of Period $
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