Ask Question
3 January, 21:03

The following information is available for Waterway Industries for the year ended December 31, 2022.

Beginning cash balance $ 51,750

Accounts payable decrease 4,255

Depreciation expense 186,300

Accounts receivable increase 9,430

Inventory increase 12,650

Net income 326,715

Cash received for sale of land at book value 40,250

Cash dividends paid 13,800

Income taxes payable increase 5,405

Cash used to purchase building 332,350

Cash used to purchase treasury stock 29,900

Cash received from issuing bonds 230,000

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e. g. - 15,000 or in parent Bonita Industries.)

+2
Answers (1)
  1. 3 January, 21:56
    0
    Ending cash balance $438,035

    Explanation:

    Waterway Industries

    Statement of cash flows

    For the year ended December 31, 2022

    Net income $326,715

    Cash flow from operating activities:

    Depreciation expense 186,300

    Accounts payable decrease (4,255)

    Accounts receivable increase (9,430)

    Inventory increase (12,650)

    Income taxes payable increase 5,405

    165,370

    Net cash provided by operating activities = 492,085

    Cash flow from investing activities:

    Cash received for sale of land 40,250

    Cash used to purchase building (332,350)

    Net cash used by investing activities (292,100)

    Cash flow from financing activities:

    Cash dividends paid (13,800)

    Cash used to purchase treasury stock (29,900)

    Cash received from issuing bonds 230,000

    Net cash provided from financing activities 186,300

    Net changes in cash 386,285

    Beginning cash balance 51,750

    Ending cash balance $438,035
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following information is available for Waterway Industries for the year ended December 31, 2022. Beginning cash balance $ 51,750 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers