GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing, TEAM)	$ 533,000
Sales revenue (MU watches)	108,000
Total revenues		$ 641,000
Expenses:
Cost of goods sold (watches)	65,000
Operating expenses	303,776
Depreciation expense	45,000
Interest expense	29,224
Income tax expense	54,000
Total expenses		497,000
Net income		$ 144,000

GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019
	2020			2019			Increase (I) or Decrease (D)
Assets
Current assets:
Cash	$	289,666		$	133,000		$	156,666	(I)
Accounts receivable		37,500			30,000			7,500	(I)
Inventory		16,250			13,500			2,750	(I)
Other current assets		12,250			10,500			1,750	(I)
Long-term assets:
Land		450,000			0			450,000	(I)
Buildings		1,000,000			0			1,000,000	(I)
Equipment		60,000			60,000
Accumulated depreciation		(69,000)			(24,000)			45,000	(I)
Total assets	$	1,796,666		$	223,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	11,250		$	8,500		$	2,750	(I)
Interest payable		700			700
Income tax payable		54,000			35,500			18,500	(I)
Long-term liabilities:
Notes payable		439,916			27,500			412,416	(I)
Stockholders' Equity:
Common stock		120,000			20,000			100,000	(I)
Paid-in capital		1,106,000			0			1,106,000	(I)
Retained earnings		160,800			130,800			30,000	(I)
Treasury stock		(96,000)			0			(96,000)	(I)
Total liabilities and stockholders equity	$	1,796,666		$	223,000

Additional Information for 2020:

1. Borrowed $450,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,584.

2. Issued common stock for $1,200,000.

3. Purchased 12,000 shares of treasury stock for $16 per share.

4. Reissued 6,000 shares of treasury stock at $17 per share.

5. Declared and paid a cash dividend of $114,000.

Required:

Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method