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Exercise 23-11 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 Cash $1,760 Receivables 1,740 Inventory 1,640 Plant assets 1,890 Accumulated depreciation (1,280 ) Long-term investments (held-to-maturity) 1,280 $7,030 2019 $1,130 1,270 1,880 1,700 (1,150 ) 1,400 $6,230 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,200 190 1,380 1,870 2,390 $7,030 $920 260 1,520 1,660 1,870 $6,230 WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses $6,970 4,780 2,190 930 - Sons Inc WATERWAY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains Gain on sale of investments Income before tax Income tax expense Net Income Cash dividends Income retained in business $6,970 4,780 2,190 930 1,260 70 1,330 550 780 260 $520 Additional information: Additional information During the year, 50 of common stock was un change for plantas. No plant 2020 Prepare a statement of cash flows using the indirect method. (Show amounts that decreases with the WATERWAY COMPANY Statement of Cash Flows (Indirect Method) Adjustments to record net income to

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