The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. $189, 590 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net revenues: Expenses: Cost of goods sold $39, 700 Operating expenses 66, 040 Depreciation expense 19, 050 Interest expense 9, 777 Income tax expense 15, 700 Total expenses Net income 150, 267 $ 39, 323 -S GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 Increase (I) or Decrease (D) 2022 2021 $ $ 272, 198 49, 760 9, 400 1, 140 $ 56, 580 0 0 5, 460 215, 618 (I) 49, 760 (I) 9, 400 (I) 4, 320 (D) Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets 740,000 872,000 86, 720 (27,650) $2,003,568 0 0 52,000 (8,600) $113, 600 740,000 (I) 872,000 (I) 34, 720 (I) 19,050 (I) $ 28, 080 (I) 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 31, 360 870 15, 700 28, 200 763, 345 $ 3,280 870 14, 240 0 32, 400 1, 460 (I) 28, 200 (I) 730, 945 (I) 144,000 1, 122,400 59,693 (162, 000) $2,003, 568 20,000 0 34, 650 0 $113, 600 124,000 (1) 1, 122, 400 (I) 25, 043 (I) (162, 000) (I) LUJUILUIT SLUCK Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 144, UUU 1, 122,400 59,693 (162, 000) $2,003, 568 ZU, UUU 0 34, 650 0 $113,600 124, UUU ( 11) 1, 122,400 (I) 25, 043 (I) (162, 000) (I) Additional Information for 2022: 1. Land of $740,000 was obtained by issuing a note payable to the seller. 2. Buildings of $872,000 and equipment of $34,720 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $9,055. 4. Issued common stock for $1,240,000. 5. Purchased 12,400 shares of treasury stock for $27 per share. 6. Sold 6,400 shares of treasury stock at $28 per share. 7. Declared and paid a cash dividend of $14,280. 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. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Increase in inventory Decrease in other current assets Increase in accounts payable Increase in income tax payable Increase in other current assets Net cash flow from operating activities 0 For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Increase in inventory Decrease in other current assets Increase in accounts payable Increase in income tax payable Increase in other current assets $ 0 Net cash flow from operating activities Cash Flows from Investing Activities Purchase of buildings Purchase of equipment 0 Net cash flow from investing activities Cash Flows from Financing Activities Repayment of notes payable Issued common stock Purchased treasury stock Payment of dividends 0 0 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 $ 0