Waterway Company

Income Statement

For the Year Ended December $31,2025$ Additional information:

During the year, $$70$ of common stock was issued in exchange for plant assets. No plant assets were sold in $2025.$

Prepare a statement of cash flows using the indirect method. $($Show amounts that decrease cash flow with either $a-$ sign e$.$g$.-15,000$ or in

parenthesis e$.$g$.(15,000).$

WATERWAY COMPANY

STATEMENT OF CASH FLOWS

For the Year Ended December $31,2025$

$($Indirect Method$)$

Cash Flows from Operating Activities

Adjustments to reconcile net income to

Depreciation Expense

Increase in Accounts Receivable

Increase in Accounts Payable

Decrease in Accrued Liabilities

Gain on Sale of Investments Cash Flows from Operating Activities

Cash Flows from Operating Activities

Decrease in Accounts Receivable

Net Cash Used bv Operating Activities

Cash Flows from Financing Activities

Issuance of Capital Stock

Payment of Cash Dividends

Redemption of Bonds Payable

Net Cash Used by Financing Activities

Cash, January $1,2025$Net Increase in Cash

Cash, January $1,2025$

Cash, December $31,2025$

Noncash Investing and Financing Activities $vv$

Issuance of Common Stock for Plant Assets Condensed financial data of Waterway Company for $2025$ and $2024$ are presented below.