Waterways prepared the balance sheet and income statement for the irrigation installation division for 2020. Now the company also needs to prepare a statement of cash flows for the same division. The comparative balance sheets for Waterways Corporation's Irrigation Installation Division for the years 2019 and 2020 and the income statement for the year 2020 are presented below. Additional information: 1. Waterways sold a company vehicle for $23,900. The vehicle had been used for 10 years. It cost $80,500 when purchased and had a 10-year life and a $6,000 salvage value. Straight-line depreciation was used. 2. Waterways purchased with cash new equipment costing $209,800. 3. Prepaid expenses increased by $35,000. All changes in accounts payable relate to inventory purchases. WATERWAYS CORPORATION-INSTALLATION DIVISION Balance Sheets December 31 Assets 2020 2019 Current assets Cash $829,200 $747,000 Accounts receivable 675,300 540,700 Work in process 708,400 Inventory 16,700 7,600 Prepaid expenses 77,200 42,200 Total current assets 2,306,800 1,337,500 Property, plant, and equipment Land 298,000 298,000 Buildings 447,000 447,000 Equipment 926,600 797,300 Furnishings 40,000 40,000 Accumulated depreciation (479,400) (489,100) Total property, plant, and equipment 1,232,200 1,093,200 Total assets $3,539,000 $2,430,700 Liabilities and Stockholders' Equity Current liabilities Accounts payable $155,500 $129,100 Income taxes payable 101,700 79,700 Wages payable 4,600 2,000 Interest payable 1,100 Other current liabilities 14,600 15,400 Revolving bank loan payable 14,900 Total current liabilities 292,400 226,200 Long-term liabilities Note payable 140,000 Total liabilities 432,400 226,200 Stockholders' equity Common stock 1,250,000 1,250,000 Retained earnings 1,856,600 954,500 Total stockholders' equity 3,106,600 2,204,500 Total.labilities and stockholders enmit $32.539,000 $2.430, 700 Liabilities and Stockholders' Equity Current liabilities Accounts payable $155,500 $129,100 Income taxes payable 101,700 79,700 Wages payable 4,600 2,000 Interest payable 1,100 Other current liabilities 14,600 15,400 Revolving bank loan payable 14,900 Total current liabilities 292,400 226,200 Long-term liabilities Note payable 140,000 Total liabilities 432,400 226,200 Stockholders' equity Common stock 1,250,000 1,250,000 Retained earnings 1,856,600 954,500 Total stockholders' equity 3,106,600 2,204,500 Total liabilities and stockholders' equity $3,539,000 $2,430,700 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement For the Year Ending December 31, 2020 Sales $5,533,614 Less: Cost of goods sold 3,129,600 Gross profit 2,404,014 Operating expenses Advertising $49,800 Insurance 400,500 Salaries and wages 584,800 Depreciation 64,800 Other operating expenses 21,100 Total operating expenses 1,121,000 Income from operations 1,283,014 Other income Gain on sale of equipment 17,900 Other expenses Interest 2200 8. 80 DOO 000 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement For the Year Ending December 31, 2020 Sales $5,533,614 Less: Cost of goods sold 3,129,600 Gross profit 2,404,014 Operating expenses Advertising $49,800 Insurance 400,500 Salaries and wages 584,800 Depreciation 64,800 Other operating expenses 21,100 Total operating expenses 1,121,000 Income from operations 1,283,014 Other income Gain on sale of equipment 17,900 Other expenses Interest expense (12,200) Net other income and expenses 5,700 Income before income tax 1,288,714 Income tax expense 386,614 Net Income $902,100 (a) Prepare a statement of cash flows using the indirect method for the year 2020. (Show amounts (15,000).) WATERWAYS CORPORATION-Installation Division Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to (a) Prepare a statement of cash flows using the Indirect method for the year 2020. (Show amounts that decrease ca (15,000).) WATERWAYS CORPORATION-Installation Division Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to > > >
