Question
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. Additional Information for 2020: 1. Borrowed $500,000 in January 2020.
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below.
Additional Information for 2020:
1. Borrowed $500,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,638.
2. Issued common stock for $1,200,000.
3. Purchased 10,000 shares of treasury stock for $15 per share.
4. Reissued 5,000 shares of treasury stock at $16 per share.
5. Declared and paid a cash dividend of $115,000.
Required:
Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method.
GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2020 Revenues: 543,000 Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) 118,000 Total revenues Expenses 70,000 Cost of goods sold (watches) 304,276 Operating expenses Depreciation expense 50,000 Interest expense 29,724 Income tax expense 57,000 Total expenses Net income 661,000 511,000 150,000Step by Step Solution
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