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 Property, plant and equipment $607000 Less accumulated depreciation (321000) 286000 $1435000 12/31/21 $ 191000 218000 481000 $961000 (306000) 655000 $1545000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 175000 350000 361000 221500 327500 $1435000 $ 94000 393000 602000 215000 241000 $1545000 $8390000 7153000 1237000 INCOME STATEMENT For the Year Ended December 31, 2022 Sales revenue Cost of sales Gross profit Selling expenses $601000 Administrative expenses 192000 Income from operations Interest expense Income before taxes Income taxes Net income 793000 444000 74000 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 $285000 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 $277500. $401500. $229500. $186500