[The following information applies to the questions displayed below.]

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

As you can tell from the financial statements, 2020 was an especially busy year. Tony and Suzie were able to use the $1.2 million received from the issuance of 100,000 shares of stock to hire a construction company for $1 million to build the cabins, dining facilities, ropes course, and the outdoor swimming pool. They even put in a baby pool to celebrate the birth of their firstborn son, little Venture Matheson. Assume all sales and services are on credit.

The following Information applies to the questions displayed belowj Income statement and balance sheet data 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) Sales revenue (MU watches) $547000 122,000 Total revenues $669,000 Expenses Cost of goods sold (MU watches) Operating expenses Depreciation expense Interest expense Income tax expense 72,000 304,476 52,000 29,924 58,200 Total expenses 516,600 Net income $152.400 GREAT ADVENTURES, INC. Balance Sheets December 31. 2020 and 2019 Increase () or Decrease (D) 2020 2019 Current assets: 187,832 (1) 11,000 () 3,100 () 327832 $ Cash Accounts receivable Inventory Other current assets 48,000 17,300 13,300 140,000 37,000 14,200 11.200 Long-term assets 300,000 1,200,000 67000 77.750) 300,000 (l) 0 1,200,000 () 0 Buildings Equipment Less: Accumulated depreciation 67000 (25,750) 52,000 () Total assets $ 1.895,682 $243,650 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable $12,300 770 58,200 $9.200 39,000 31.000 3,100 ) 19,200 () 482,332 () Long-term liabilities: Notes payable 513,332 Stockholders' equity Common stock Paid-in capital Retained earnings Treasury stock 130,000 1,105,00 161,080 (85,000) 30,000 0 133.680 0 100,000 (I) 1105,000 () 27,400 () (85,000) () Total liabilities and stockholders' equity $1.895,682 $243,650