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 \$