Great Adventures Problem AP11-1 The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. $191,700 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net revenues: Expenses: Cost of goods sold $39,800 Operating expenses 67,260 Depreciation expense 19,200 Interest expense 10,027 Income tax expense 15,800 Total expenses Net income 152,087 $ 39,613 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 Increase (I) or Decrease (D) 2022 2021 $ $ 279, 834 49,940 9,600 1,160 $ 55,920 0 0 5,540 223,914 (I) 49,940 (I) 9,600 (1) 4,380 (D) Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets 760,000 878,000 88,780 (27,850) $2,039,464 0 0 53,000 (8,650). $114,650 760,000 (I) 878,000 (1) 35,780 (I) 19,200 (1) $ $ $ 28,920 (I) 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 32,240 880 15,800 28,800 783, 301 3,320 880 14,260 0 32,600 1,540 (I) 28,800 (I) 750,701 (I) 146,000 1,140,600 59, 843 (168,000) $2,039,464 20,000 0 34,750 0 126,000 (I) 1,140,600 (I) 25,093 (I) (168,000) (I) $114,650 Additional Information for 2022: 1. Land of $760,000 was obtained by issuing a note payable to the seller. 2. Buildings of $878,000 and equipment of $35,780 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $9,299. 4. Issued common stock for $1,260,000. 5. Purchased 12,600 shares of treasury stock for $28 per share. 6. Sold 6,600 shares of treasury stock at $29 per share. 7. Declared and paid a cash dividend of $14,520. Required: Prepare the statement of cash flows for the year ended December 31, 2022, using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: $ 0 Net cash flow from operating activities Cash Flows from Investing Activities Net cash flow from investing activities Cash Flows from Financing Activities Net cash flows from financing activities 0 0 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities $ 0
