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