Waterway Inc. had the fol lowing balance sheet at December 31, 2019. WATERWAY INC. BALANCE SHEET DECEMBER 31, 2019 Cash $21,470 Accounts payable $31,470 Accounts receivable 22,670 Notes payable [long-term] 42,470 Investments 33,470 Common stock 101,470 Plant assets [net] 81,000 Retained earnings 24,670 Land 41,470 $ 200,080 $ 200,080 During 2020, the following occurred. 1. Watenvay Inc. sold part of its debt investment portfolio for $ 15,463.Th is trans action resulted in a gain of $3,863 for the rm. The company classies these investments as available-for-sale. . A tract of land was purchased for $14,470 cash. Long-term notes payable in the amount of $16,463 were retired before maturity by paying $16,463 cash. . An additional $20,463 in common stock was issued at par. . Net income for 2020 was $33,470 after allowing for depreciation of $11,463. 2 3 4 5. Dividends of $8,663 were declared and paid to stockholders. 6 7. Land was purchased through the issuance of $36,470 in bonds. 3 . At December 31, 2020, Cash was $33,470, Accounts Receivable was $43,070, and Accounts Payable remained at $31,470. Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WATERWAY INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 33,470 Adjustments to reconcile net income to Net Cash Provided by Operating Activities # Depreciation Expense 11,463 Gain on Sale of Investments (3,863) Increase in Account Receivable + (20,400) (12,800) Net Cash Provided by Investing Activities # 20,670 Cash Flows from Investing Activities Sale of Investments (14,470) Purchase of Land 15,463 Net Cash Provided by Investing Activities + 993 Cash Flows from Financing Activities Payment of Cash Dividends (8,663)Net Cash Provided by Investing Activities 993 Cash Flows from Financing Activities Payment of Cash Dividends (8,663) Issuance of Common Stock 20,463 Retirement of Notes Payable (16463) Net Cash Provided by Financing Activities (4,663) Net Increase in Cash 17,000 Cash at Beginning of Year 21,470 Cash at End of Year 3,8470 Noncash Investing and Financing Activities + Land purchased through issuance of $ of bonds e Textbook and Media List of AccountsPrepare an unclassified balance sheet as it would appear at December 31, 2020. (List Assets in order of liquidity.) WATERWAY INC. Balance Sheet Assets Cash $ Accounts Receivable Liabilities and Stockholders' Equity $eTextbook and Media List of Accounts Compute two cash ow ratios. [Round ratios to 2 decimal places. 8.3. 0.62.) Current cash debt coverage ratio ' :1 Cash debt coverage ratio ' :1 eTextbook and Media List of Accounts
