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.)

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