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. Income Statement For the year ended December 31, 2022 Net revenues: $183,260 Expenses: Cost of goods sold $39,400 Operating 62,380 expenses Depreciation 18,600 expense Interest 9,029 expense Income tax 15,400 expense Total expenses 144,809 Net income $ 38,451 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 Increase (I) or 2022 2021 Decrease (D) Assets Current assets: Cash $ 249,292 $ 58,560 $ 190,732 (I) Accounts receivable 49,220 0 49,220 (I) Inventory 8,800 0 8,800 (I) Other current assets 1,080 5,220 4,140 (D) Long-term assets: Land 680,000 0 680,000 (I) Buildings 854,000 0 854,000 (I) Equipment 80,540 49,000 31,540 (I) Accumulated depreciation (27,050) (8,450) 18,600 (I) Total assets $1,895,882 $110,450 Liabilities and Stockholders' Equity Current liabilities: Accounts $ payable 28,720 $ 3,160 $ 25,560 (I) Interest 840 840 payable Income tax payable 15,400 14,180 1,220 (I) Other current liabilities 26,400 0 26,400 (I) Notes payable (current and 703,481 31,800 671,681 (I) long-term) Stockholders' equity: Common stock 138,000 20,000 118,000 (I) Paid-in capital 1,067,800 0 1,067,800 (I) Retained earnings 59,241 34,350 24,891 (I) Treasury stock (144,000) 0 (144,000) (I) Total liabilities and $1,895,882 $110,450 stockholders' equity Additional Information for 2022: 1. Land of $680,000 was obtained by issuing a note payable to the seller. !. Buildings of $854,000 and equipment of $31,540 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $8,319. t. Issued common stock for $1,180,000. 1. Purchased 11,800 shares of treasury stock for $24 per share. j. Sold 5,800 shares of treasury stock at $25 per share. 7. Declared and paid a cash dividend of $13,560. X Answer is not complete. GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net income $ 38,45 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense 18,60 Increase in accounts (49,220 receivable Increase in inventory (8,800 Decrease in other 4,146 current assets Increase in accounts 25,56 payable Increase in income tay 1,220 payable $ 29,951 Net cash flow from operating activities Cash Flows from Investing Activities Purchase of buildings (854,000 Net cash flow from 1951 nnn Cash Flows from Financing Activities Repayment of notes payable Issued common stock Purchased treasury stock Sale of treasury stock (8,319 1,180,000 (283,200 145,00 1,033,481 209,432 110,45 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 Purchase land issuing a note payable $ 319,882 $ 680,00
