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Waterways prepared the balance sheet and income statement for the irrigation installation division for $2022.$ Now the company also needs to prepare a statement of cash flows for the same division. The comparative balance sheets for Waterways Corporation's Irrigation Installation Division for the years $2021$ and $2022$ and the income statement for the year $2022$ are presented below.

Additional information

$1.$Waterways sold a company vehicle for $$24000$ The vehicle had been used for $10$ years It cost $$79300$ when purchased and had a $10$ year life and a $$6000$ salvage value. Straight line depreciationwas used.

$2.$Watery purchased with cash new equipment costing $$208800$

$3.$Prepaid expenses increased by $$33500.$ All changes in accountsts payable relate to inventory purchases.

WATERWAYS CORPORATION INSTALLATION DIVISION

Balance Sheets December $31$

$2022$

$2021$

Assets

Current assets

Cash

$$833800$

$$749800$

Accounts receivable

$682300$

$541800$

Work in process

$695400$

$\_$

Inventory

$16700$

$7400$

Prepaid expenses

$76000$

$42500$

Total current assets

$2309200$

$1,341,500$

Property, plant, and equipment

Land

$300000$

$300000$

Buildings

$453000$

$453000$

Equiment

$934100$

$804600$

Furnishings

$40,000$

$40,000$

Accumulated depreciation

$(484100)$

$(481800)$

Total property, plant, and equipment

$1243000$

$1115800$

Total assets

$$3552200$

$$2457300$

Liabilities and Stockholders' Equity

Current abilities

Accounts payable

$$155700$

$$127200$

Income taxes payable

$100,900$

$80,700$

Wages payable

$4500$

$2000$

Interest payable

$1200$

$\_$

Other current liabilities

$14400$

$15300$

Revolving bank loan payable

$15200$

$\_$

Total current liabilities

$291900$

$225200$

Long$-$term liabilities

Note payable

$141000$

$\_$

Total abilities

$432900$

$225200$

Stockholders' equity

Common stock

$1250000$

$1250000$

Retained earnings

$1869300$

$982100$

Total stockholders equity

$3119300$

$2232100$

Total liabilities and stockholders equity

$$3552200$

$$2457300$

WATERWAYS CORPORATION$-$INSTALLATION DIVISION

Income Statement

For the Year Ending December $31,2022$

Sales$-$ $$5554929$

Less Cost of goods sold$-$ $$3157800$

Gross profit$-$ $$2397129$

Operating expenses

Advertising

$$50,300$

Insurance

$398500$

Salaries and wages

$590,100$

Depreciation

$75\mathrm{.}600$

Other operating expenses

$21200$

Total operating expenses

$1135700$

income from operations

$1261429$

Other income

Gain on sale of equipment $-18000$

Other expenses:

Interest expense$(12000)$

Net other income and expenses : $6000$

Income before income tax : $1267429$

Income tax expense$-380229$

Net income $-$ $$887200$

$2007200$

a$)$ Prepare a statement of cash flows using the indirect method for the year $2022($Show amounts that decrease cash flow with either a sign eg $-15,000$ or in parenthesis eg $(15,000))$

WATERWAYS CORPORATION$-$Installation Division

Statement of Cash Flows$-$Indirect Method