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Waterway Company Statement of Cash Flow December 31st,2025 CashFlowfromOperatingActivities NetIncome $25,600.00 OperatingActivities DepreciationExpense-Equipment $14,000.00 IncreaseinAccountsReceivable-16000-$11200 -$4,800.00 IncreaseinInventory-22400-$16000 -$6,400.00 IncreaseinAccountsPayable-15200-$12000 $3,200.00 DecreaseinIncometaxPayable=-5600-$6400 -$800.00 $5,200 NetCashProvidedbyOperatingActivity=-A $30,800
Waterway Company | ||
Statement of Cash Flow | ||
December 31st,2025 | ||
CashFlowfromOperatingActivities | ||
NetIncome | $25,600.00 | |
OperatingActivities | ||
DepreciationExpense-Equipment | $14,000.00 | |
IncreaseinAccountsReceivable-16000-$11200 | -$4,800.00 | |
IncreaseinInventory-22400-$16000 | -$6,400.00 | |
IncreaseinAccountsPayable-15200-$12000 | $3,200.00 | |
DecreaseinIncometaxPayable=-5600-$6400 | -$800.00 | $5,200 |
NetCashProvidedbyOperatingActivity=-A | $30,800 | |
CashFlowfromInvestingActivities | ||
Sale of Equipment | $6,800.00 | |
CashFlowfromInvestingActivities=-B | $6,800 | |
CashFlowfomFinancingActivities | ||
RedeembedBondsPayable($26400-$13600) | -$12,800.00 | |
PaymentofDividends(As per additional data 2) | -$16,000.00 | |
Issueofcommonstock | $3,200.00 | |
NetCashusedbyFinancingActivities=-C | -$25,600 | |
NetIncreaseincash=-D=(A)+(B)+(C) | $12,000 | |
Cashatthebeginningoftheperiod=-E | $16,000.00 | |
Cashattheendoftheperiod=-D+(E) | $28,000 |
Presented here are the financial statements of Waterway Company. Additional data: 1. Depreciation expense was $14,000. 2. Dividends declared and paid were $16,000. 3. During the year, equipment was sold for $6,800 cash. This equipment originally cost $14,400 and had accumulated depreciation of $7,600 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Compute free cash flow. (Show amounts that decrease free cash flow with either a - sign e.g. 15,000 or in parenthesis e.g. (15,000). ) Free cash flow \$
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