he income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.

GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020
Revenues:
Service revenue (clinic, racing, TEAM)	$ 545,000
Sales revenue (MU watches)	120,000
Total revenues		$ 665,000
Expenses:
Cost of goods sold (watches)	71,000
Operating expenses	304,376
Depreciation expense	51,000
Interest expense	29,824
Income tax expense	57,600
Total expenses		513,800
Net income		$ 151,200

GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019
	2020		2019		Increase (I) or Decrease (D)
Assets
Current assets:
Cash	$	325,094		$	139,000		$	186,094	(I)
Accounts receivable		46,500			36,000			10,500	(I)
Inventory		17,150			14,100			3,050	(I)
Other current assets		13,150			11,100			2,050	(I)
Long-term assets:
Land		400,000			0			400,000	(I)
Buildings		1,100,000			0			1,100,000	(I)
Equipment		66,000			66,000
Accumulated depreciation		(76,500)			(25,500)			51,000	(I)
Total assets	$	1,891,394		$	240,700
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	12,150		$	9,100		$	3,050	(I)
Interest payable		760			760
Income tax payable		57,600			38,500			19,100	(I)
Long-term liabilities:
Notes payable		502,844			30,500			472,344	(I)
Stockholders' Equity:
Common stock		125,000			25,000			100,000	(I)
Paid-in capital		1,105,000			0			1,105,000	(I)
Retained earnings		168,040			136,840			31,200	(I)
Treasury stock		(80,000)			0			(80,000)	(I)
Total liabilities and stockholders equity	$	1,891,394		$	240,700

Additional Information for 2020:

1. Borrowed $510,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,656.

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

3. Purchased 10,000 shares of treasury stock for $16 per share.

4. Reissued 5,000 shares of treasury stock at $17 per share.

5. Declared and paid a cash dividend of $120,000.

Required:

Prepare the statement of cash flows for the year ended December 31, 2020, using theindirectmethod.(List cash outflows as negative amounts.)

References