RWP11-1 (Algo) Great Adventures Continuing Case The income statement, balance sheets, and additional information for Great Adventures, Incorporated, are provided below. Net revenues: Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $200,140 $40,200 72,140 19,800 11,024 16,200 159,364 $ 40,776 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 2025 2024 Increase (I) or Decrease (D) $ 310,378 $ 53,280 50,660 0 10,400 0 $ 257,098 (I) 50,660 (I) 10,400 (I) 1,240 5,860 4,620 (D) 840,000 0 840,000 (I) 902,000 0 902,000 (I) 97,020 57,000 40,020 (I) (28,650) (8,850) 19,800 (I) $2,183,048 $118,850 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets 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 $2,183,048 $ 35,760 920 16,200 $ 3,480 920 14,340 $ 32,280 (I) 31,200 0 1,860 (I) 31,200 (I) 863,122 33,400 829,722 (I) 154,000 20,000 1,213,400 0 134,000 1,213,400 (I) (I) 60,446 (192,000) 35,150 25,296 (I) 0 (192,000) (I) $118,850 Additional Information for 2025: 1. Land of $840,000 was obtained by issuing a note payable to the seller. 2. Buildings of $902,000 and equipment of $40,020 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $10,278. 4. Issued common stock for $1,340,000. 5. Purchased 13,400 shares of treasury stock for $32 per share. 6. Sold 7,400 shares of treasury stock at $33 per share. 7. Declared and paid a cash dividend of $15,480. Required: Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) GREAT ADVENTURES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: 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 Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities