Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY
Condensed financial data of Waterway Company for 2020 and 2019 are presented below. WATERWAY COMPANY
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
Related questions
Question
Condensed financial data of Waterway Company for 2020 and 2019 are presented below.
WATERWAY COMPANY
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
||||||
---|---|---|---|---|---|---|
2020
|
2019
|
|||||
Cash
|
$1,820
|
$1,130
|
||||
Receivables
|
1,730
|
1,280
|
||||
Inventory
|
1,590
|
1,870
|
||||
Plant assets
|
1,940
|
1,690
|
||||
|
(1,220
|
)
|
(1,180
|
)
|
||
Long-term investments (held-to-maturity)
|
1,300
|
1,450
|
||||
$7,160
|
$6,240
|
|||||
Accounts payable
|
$1,200
|
$920
|
||||
Accrued liabilities
|
190
|
230
|
||||
Bonds payable
|
1,430
|
1,530
|
||||
Common stock
|
1,930
|
1,710
|
||||
Retained earnings
|
2,410
|
1,850
|
||||
$7,160
|
$6,240
|
WATERWAY COMPANY
INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 |
||
---|---|---|
Sales revenue
|
$6,840
|
|
Cost of goods sold
|
4,630
|
|
Gross margin
|
2,210
|
|
Selling and administrative expenses
|
930
|
|
Income from operations
|
1,280
|
|
Other revenues and gains
|
||
Gain on sale of investments
|
90
|
|
Income before tax
|
1,370
|
|
Income tax expense
|
550
|
|
Net income
|
820 | |
Cash dividends
|
260
|
|
Income retained in business
|
$560
|
Additional information:
During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
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 parenthesis e.g. (15,000).)
![During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
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 parenthesis eg. (15,000),)
WATERWAY COMPANY
Statement of Cash Flows
For the Year Ended December 31. 2020
(Indirect Method)
Cash Flows from Operatine Activities
Net Income
Adjustments to reconile net income to
Net Cash Used bv Operatine Activities
Deoreciation Expense
Increase in Accounts Receivable
Decrease in Inventorv
Decrease in Accounts Pavable
Decrease in Accrued Liabilities
Net Cash Provided bv Operatine Activities
Cash Flows from Investine Activities
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Facf132ad-2621-4e78-87ab-08965feb33ac%2F36e33d89-c548-4674-b4e6-0a9f188cff0f%2Fjuqy5h_processed.png&w=3840&q=75)
Transcribed Image Text:During the year, $60 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.
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 parenthesis eg. (15,000),)
WATERWAY COMPANY
Statement of Cash Flows
For the Year Ended December 31. 2020
(Indirect Method)
Cash Flows from Operatine Activities
Net Income
Adjustments to reconile net income to
Net Cash Used bv Operatine Activities
Deoreciation Expense
Increase in Accounts Receivable
Decrease in Inventorv
Decrease in Accounts Pavable
Decrease in Accrued Liabilities
Net Cash Provided bv Operatine Activities
Cash Flows from Investine Activities
$
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Cornerstones of Financial Accounting](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
![Financial Accounting: The Impact on Decision Make…](https://www.bartleby.com/isbn_cover_images/9781305654174/9781305654174_smallCoverImage.gif)
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College