Great Adventures Problem AP11-1 The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided $ 204,360 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net revenues: Expenses: Cost of goods sold $ 40,400 Operating expenses 74,580 Depreciation expense 20,100 Interest expense 11,523 Income tax expense 16,400 Total expenses Net income 163,003 $ 41,357 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 Increase (I) or Decrease (D) $ $ 51,960 $ 325,650 51,020 10,800 1,280 273,690 51,020 10,800 4,740 (I) (1) (I) (D) 0 6,020 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets 880,000 914,000 101,140 (29,050) $2,254,840 880,000 914,000 42,140 20,100 (1) (I) (I) (I) 59,000 (8,950) $120,950 $ $ $ 33,960 (I) 37,520 940 16,400 32,400 903,033 3,560 940 14,380 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Other current liabilities Notes payable (current and long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 2,020 (1) 32,400 (I) 869,233 (I) 33,800 20,000 158,000 1,249,800 60, 747 (204,000) $2,254,840 35, 350 0 $120,950 138,000 (I) 1,249,800 (I) 25,397 (I) (204,000) (I) GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net income $ 41,357 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Increase in inventory Decrease in other current assets Increase in accounts payable Increase in income tax payable Increase in other current liabilities $ 41,357 Net cash flow from operating activities Cash Flows from Investing Activities Purchase of buildings Purchase of equipment Net cash flow from investing activities Cash Flows from Financing Activities Issued common stock Sale of treasury stock Payment of dividends Purchased treasury stock Repayment of notes payable 41,357 Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 41,357