Great Adventures Problem AP12-1

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Income statement and balance sheet data for Great Adventures, Inc., are provided below.

GREAT ADVENTURES, INC.
Income Statement
For the year ended December 31, 2022
Net sales revenues				$	203,860
Interest revenue					500
Expenses:
Cost of goods sold	$	40,400
Operating expenses		74,580
Depreciation expense		19,150
Interest expense		11,523
Income tax expense		16,400
Total expenses					162,053
Net income				$	42,307

GREAT ADVENTURES, INC.
Balance Sheets
December 31, 2022 and 2021
	2022				2021
Assets
Current assets:
Cash	$	342,940			$	64,880
Accounts receivable		51,020				0
Inventory		10,800				0
Other current assets		1,280				6,020
Long-term assets:
Land		880,000				0
Buildings		895,000				0
Equipment		101,140				59,000
Accumulated depreciation		(29,050	)			(8,950	)
Total assets	$	2,253,130			$	120,950
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$	24,600			$	3,560
Interest payable		1,700				940
Income tax payable		16,400				14,380
Other current liabilities		32,400				0
Notes payable (current)		86,404				0
Notes payable (long-term)		826,129				33,800
Stockholders equity:
Common stock		158,000				32,920
Paid-in capital		1,249,800				0
Retained earnings		61,697				35,350
Treasury stock		(204,000	)			0
Total liabilities and stockholders equity	$	2,253,130			$	120,950

As you can tell from the financial statements, 2022 was an especially busy year. Tony and Suzie were able to use the money received from borrowing and the issuance of stock to buy land and begin construction of cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their first child.

Great Adventures Problem AP12-1 Part 1