Waterway Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the followin information December 31 2020 2019 $38,700 $13,100 Cash 12.100 10.000 Accounts receivable Inventory Equity Investments 12.000 10,100 -0- 2.900 -0- 29,900 Buildings 40,200 20.100 Equipment Copyrights 5.000 5.200 $108.000 $91.300 Totals $3,000 $4.500 Allowance for doubtful accounts 2,000 4,600 Accumulated depreciation-equipment Accumulated depreciation-buildings -O- 5.900 -0- 5.100 Dividends payable Notes payable, short-term (nontrade) Long-term notes payable 3.100 4,000 36,000 25,000 Common stock 38,000 33.000 Retained earnings 5,100 20,900 $108,000 $91,300 Additional data related to 2020 are as follows. 1. 2. 3. 4. Equipment that had cost $11.100 and was 30% depreciated at time of disposal was sold for $2.500 $5,000 of the long-term note payable was paid by issuing common stock Cash dividends paid were $5,100. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $32.800 inet of $4.000 taxes). Equity investments (ownership is less than 20% of total shares) were sold at $1.500 above their cost. No unrealized pains or losses were recorded in 2020, Cash and a long-term note for $16,000 were given for the acquisition of equipment Interest of $2,000 and income taxes of 55.000 were paid in cash. 5. 6. 7 (a) Use the indirect method to analyze the above information and prepare a statement of cash flows for Waterway. decrease cash flow with elther a-sign eg. -15,000 or In parenthesis eg. (15,000).) WATERWAY CORPORATION Statement of Cash Flows Cash Flows from Operating Activities Adjustments to reconcile net income to > C