Homework Help is Here – Start Your Trial Now!
Business
Accounting
Waterway Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Waterway Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Paid-in capital, common stock Retained earnings Total liabilities and stockholders' equity 12/31/25 $6,000 62,000 34,900 40,400 5,100 154,900 (34,900) 12/31/24 $7,100 50,900 17,900 59,800 3,900 129,200 (25,200) 46,200 $314,600 $46,500 4,000 8,000 8,100 60,600 100,000 30,000 57,400 49,500 $293,100 $40,100 6,100 3,900 10,000 69,200 100,000 30,000 33,800 $314,600 $293,100 Income Statement For the Year Ending December 31, 2025 Sales revenue 1. Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense ded in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2025. $11,400 WATERWAY INC. 2,000 CASH FLOWS $340,125 174,600 165,525 119,000 46,525 9,400 37,125 7,425 Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).) $29,700

Waterway Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Waterway Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Paid-in capital, common stock Retained earnings Total liabilities and stockholders' equity 12/31/25 $6,000 62,000 34,900 40,400 5,100 154,900 (34,900) 12/31/24 $7,100 50,900 17,900 59,800 3,900 129,200 (25,200) 46,200 $314,600 $46,500 4,000 8,000 8,100 60,600 100,000 30,000 57,400 49,500 $293,100 $40,100 6,100 3,900 10,000 69,200 100,000 30,000 33,800 $314,600 $293,100 Income Statement For the Year Ending December 31, 2025 Sales revenue 1. Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense ded in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2025. $11,400 WATERWAY INC. 2,000 CASH FLOWS $340,125 174,600 165,525 119,000 46,525 9,400 37,125 7,425 Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).) $29,700

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 9PB: Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables....
See similar textbooks
icon
Related questions
Question

answer in text form please (without image)

Waterway Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Waterway Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Paid-in capital, common stock Retained earnings Total liabilities and stockholders' equity 12/31/25 $6,000 62,000 34,900 40,400 5,100 154,900 (34,900) 12/31/24 $7,100 50,900 17,900 59,800 3,900 129,200 (25,200) 46,200 $314,600 $46,500 4,000 8,000 8,100 60,600 100,000 30,000 57,400 49,500 $293,100 $40,100 6,100 3,900 10,000 69,200 100,000 30,000 33,800 $314,600 $293,100 Income Statement For the Year Ending December 31, 2025 Sales revenue 1. Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense ded in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2025. $11,400 WATERWAY INC. 2,000 CASH FLOWS $340,125 174,600 165,525 119,000 46,525 9,400 37,125 7,425 Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).) $29,700
Transcribed Image Text:Waterway Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Waterway Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Paid-in capital, common stock Retained earnings Total liabilities and stockholders' equity 12/31/25 $6,000 62,000 34,900 40,400 5,100 154,900 (34,900) 12/31/24 $7,100 50,900 17,900 59,800 3,900 129,200 (25,200) 46,200 $314,600 $46,500 4,000 8,000 8,100 60,600 100,000 30,000 57,400 49,500 $293,100 $40,100 6,100 3,900 10,000 69,200 100,000 30,000 33,800 $314,600 $293,100 Income Statement For the Year Ending December 31, 2025 Sales revenue 1. Cost of goods sold Gross profit Operating expenses Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income Additional information: Dividends in the amount of $6,100 were declared and paid during 2025. 2. Depreciation expense and amortization expense ded in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2025. $11,400 WATERWAY INC. 2,000 CASH FLOWS $340,125 174,600 165,525 119,000 46,525 9,400 37,125 7,425 Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).) $29,700
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS