Great Adventures Problem 11-1

The income statement, balance sheet, and additional information for Great Adventures, Inc., are provided below.

GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2017
Revenues:
Service revenue (clinic, racing, TEAM)	$ 525,000
Sales revenue (MU watches)	100,000
Total revenues		$ 625,000
Expenses:
Cost of goods sold (watches)	61,000
Operating expenses	303,376
Depreciation expense	41,000
Interest expense	28,824
Income tax expense	51,600
Total expenses		485,800
Net income		$ 139,200

GREAT ADVENTURES, INC. Balance Sheet December 31, 2017 and 2016
	2017			2016			Increase (I) or Decrease (D)
Assets
Current assets:
Cash	$	301,714		$	129,000		$	172,714	(I)
Accounts receivable		31,500			26,000			5,500	(I)
Inventory		15,650			13,100			2,550	(I)
Other current assets		11,650			10,100			1,550	(I)
Long-term assets:
Land		300,000			0			300,000	(I)
Buildings		1,100,000			0			1,100,000	(I)
Equipment		56,000			56,000
Accumulated depreciation		(64,000)			(23,000)			41,000	(I)
Total assets	$	1,752,514		$	211,200
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	10,650		$	8,100		$	2,550	(I)
Interest payable		660			660
Income tax payable		51,600			33,500			18,100	(I)
Long-term liabilities:
Notes payable		397,964			25,500			372,464	(I)
Stockholders' Equity:
Common stock		125,000			25,000			100,000	(I)
Paid-in capital		1,106,000			0			1,106,000	(I)
Retained earnings		138,640			118,440			20,200	(I)
Treasury stock		(78,000)			0			(78,000)	(I)
Total liabilities and stockholders equity	$	1,752,514		$	211,200

Additional Information for 2017:
1.	Borrowed $410,000 in January 2017. Made 12 monthly payments during the year, reducing the balance of the loan by $37,536.
2.	Issued common stock for $1,200,000.
3.	Purchased 12,000 shares of treasury stock for $13 per share.
4.	Reissued 6,000 shares of treasury stock at $14 per share.
5.	Declared and paid a cash dividend of $119,000.

Required:

Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method.(List cash outflows as negative amounts.)