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Waterway Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to
Waterway Industries has recently decided to go public and has hired you as an independent CPA. One statement that the enterprise is anxious to have prepared is a statement of cash flows. Financial statements of Waterway Industries for 2022 and 2021 are provided below. BALANCE SHEETS 12/31/22 Cash $406000 Accounts receivable 358000 Inventory 385000 12/31/21 $191000 218000 481000 Property, plant and equipment $607000 $961000 Less accumulated depreciation (321000) 286000 (306000 ) 655000 $1435000 $1545000 Accounts payable $175000 $94000 Income taxes payable 350000 393000 Bonds payable 361000 602000 Common stock 221500 215000 Retained earnings 327500 241000 $1435000 $1545000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales $8390000 7153000 Gross profit 1237000 Selling expenses $601000 Administrative expenses 192000 793000 Income from operations 444000 Interest expense 74000 Income before taxes Income taxes Net income 370000 92500 $277500 The following additional data were provided: 1. Dividends for the year 2022 were $191000. 2. During the year, equipment was sold for $238000. This equipment cost $353000 originally and had a book value of $286000 at the time of sale. The loss on sale was incorrectly charged to cost of sales. 3. All depreciation expense is in the selling expense category. The net cash provided by operating activities is $401500. $229500. O $277500. $186500.
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