RWP11-1 (Algo) Great Adventures Continuing Case

The income statement, balance sheets, and additional information for Great Adventures, Incorporated, are provided below.

GREAT ADVENTURES, INCORPORATED
Income Statement
For the Year Ended December 31, 2025
Net revenues:		$168,490
Expenses:
Cost of goods sold	$38,700
Operating expenses	53,840
Depreciation expense	17,550
Interest expense	7,284
Income tax expense	14,700
Total expenses		132,074
Net income		$ 36,416

GREAT ADVENTURES, INCORPORATED
Balance Sheets
December 31, 2025 and 2024
	2025	2024	Increase (I) or Decrease (D)
Assets
Current assets:
Cash	$ 195,840	$ 63,180	$ 132,660	(I)
Accounts receivable	47,960	0	47,960	(I)
Inventory	7,400	0	7,400	(I)
Other current assets	940	4,660	3,720	(D)
Long-term assets:
Land	540,000	0	540,000	(I)
Buildings	812,000	0	812,000	(I)
Equipment	66,120	42,000	24,120	(I)
Accumulated depreciation	(25,650)	(8,100)	17,550	(I)
Total assets	$1,644,610	$103,100
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable	$ 22,560	$ 2,880	$ 19,680	(I)
Interest payable	770	770
Income tax payable	14,700	14,040	660	(I)
Other current liabilities	22,200	0	22,200	(I)
Notes payable (current and long-term)	563,794	30,400	533,394	(I)
Stockholders equity:
Common stock	124,000	20,000	104,000	(I)
Paid-in capital	940,400	0	940,400	(I)
Retained earnings	58,186	33,650	24,536	(I)
Treasury stock	(102,000)	0	(102,000)	(I)
Total liabilities and stockholders equity	$1,644,610	$103,100

Additional Information for 2025:

Land of $540,000 was obtained by issuing a note payable to the seller.

Buildings of $812,000 and equipment of $24,120 were purchased using cash.

Monthly payments during the year reduced notes payable by $6,606.

Issued common stock for $1,040,000.

Purchased 10,400 shares of treasury stock for $17 per share.

Sold 4,400 shares of treasury stock at $18 per share.

Declared and paid a cash dividend of $11,880.

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.)