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The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the year ended December
The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. |
GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2014 | ||||
Revenues: | ||||
Service revenue (clinic, racing, TEAM) | $ | 581,000 | ||
Sales revenue (MU watches) | 129,000 | |||
Total revenues | $ | 710,000 | ||
Expenses: | ||||
Cost of goods sold (watches) | 69,000 | |||
Operating expenses | 289,276 | |||
Depreciation expense | 49,000 | |||
Interest expense | 26,081 | |||
Income tax expense | 55,600 | |||
Total expenses | 488,957 | |||
Net income | $ | 221,043 | ||
GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 | |||||||||
2014 | 2013 | Increase (I) or Decrease (D) | |||||||
Assets | |||||||||
Current assets: | |||||||||
Cash | $ | 575,546 | $ | 144,760 | $ | 430,786 | (I) | ||
Accounts receivable | 44,600 | 33,800 | 10,800 | (I) | |||||
Inventory | 16,400 | 13,000 | 3,400 | (I) | |||||
Other current assets | 12,600 | 10,100 | 2,500 | (I) | |||||
Long-term assets: | |||||||||
Land | 481,000 | 0 | 481,000 | (I) | |||||
Buildings | 990,000 | 0 | 990,000 | (I) | |||||
Equipment | 63,400 | 63,400 | |||||||
Accumulated depreciation | (74,750) | (25,750) | 49,000 | (I) | |||||
Total assets | $ | 2,108,796 | $ | 239,310 | |||||
Liabilities and Stockholders' Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 13,400 | $ | 9,900 | $ | 3,500 | (I) | ||
Interest payable | 910 | 910 | |||||||
Income tax payable | 57,700 | 38,700 | 19,000 | (I) | |||||
Long-term liabilities: | |||||||||
Notes payable | 446,543 | 30,400 | 416,143 | (I) | |||||
Stockholders' Equity: | |||||||||
Common stock | 118,000 | 19,000 | 99,000 | (I) | |||||
Paid-in capital | 1,299,000 | 0 | 1,299,000 | (I) | |||||
Retained earnings | 247,343 | 140,400 | 106,943 | (I) | |||||
Treasury stock | (74,100) | 0 | (74,100) | (I) | |||||
Total liabilities and stockholders equity | $ | 2,108,796 | $ | 239,310 | |||||
Additional Information for 2014: | |
1. | Borrowed $450,000 in January 2014. Made 12 monthly payments during the year, reducing the balance of the loan by $33,857. |
2. | Issued common stock for $1.386 million. |
3. | Purchased 9,900 shares of treasury stock for $19 per share. |
4. | Reissued 6,000 shares of treasury stock at $21 per share. |
5. | Declared and paid a cash dividend of $114,100. |
Required: |
Prepare the statement of cash flows for the year ended December 31, 2014, using theindirectmethod.(Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) |
GREAT ADVENTURES, INC. Statement of Cash Flows For the year ended December 31, 2012 | ||
Cash Flows from Operating Activities | ||
(Click to select)Net incomeNet loss | $ | |
Adjustments for noncash effects: | ||
(Click to select)Increase in other current assetsDepreciation expenseIncrease in inventoryPurchase of buildingsPurchase of landPayment of dividendsIncrease in accounts payableIncrease in accounts receivable | ||
Changes in current assets and current liabilities: | ||
(Click to select)Increase in accounts receivableDepreciation expenseIncrease in other current assetsIncrease in accounts payableIncrease in income tax payableDecrease in inventoryIncrease in inventoryDecrease in accounts payable | ||
(Click to select)Increase in accounts receivableIncrease in accounts payableIncrease in other current assetsIncrease in inventoryIncrease in income tax payableDecrease in accounts payableDecrease in inventoryDepreciation expense | ||
(Click to select)Decrease in accounts payableIncrease in income tax payableIncrease in accounts receivableIncrease in inventoryDecrease in inventoryIncrease in accounts payableIncrease in other current assetsDepreciation expense | ||
(Click to select)Increase in other current assetsIncrease in accounts receivableIncrease in inventoryDecrease in inventoryDepreciation expenseIncrease in accounts payableDecrease in accounts payableIncrease in income tax payable | ||
(Click to select)Depreciation expenseIncrease in inventoryIncrease in accounts payableDecrease in inventoryIncrease in other current assetsIncrease in accounts receivableDecrease in accounts payableIncrease in income tax payable | ||
Net cash flows from operating activities | $ | |
Cash Flows from Investing Activities | ||
(Click to select)Decrease in accounts payableIncrease in accounts payablePurchase of buildingsPurchase of landIncrease in inventoryDecrease in inventoryPurchase of furnitureCash | ||
(Click to select)CashDecrease in accounts payableIncrease in inventoryPurchase of buildingsPurchase of landDecrease in inventoryIncrease in accounts payablePurchase of furniture | ||
Net cash flows from investing activities | ||
Cash Flows from Financing Activities | ||
(Click to select)Reissued treasury stockPurchased treasury stockIssued note payablePayment of dividendsRepayment of notes payableIssued common stockDecrease in accounts payableIncrease in accounts payable | ||
(Click to select)Repayment of notes payableReissued treasury stockPayment of dividendsIncrease in accounts payablePurchased treasury stockDecrease in accounts payableIssued common stockIssued note payable | ||
(Click to select)Purchased treasury stockIncrease in accounts payableDecrease in accounts payableReissued treasury stockRepayment of notes payablePayment of dividendsIssued common stockIssued note payable | ||
(Click to select)Repayment of notes payablePayment of dividendsPurchased treasury stockIssued common stockIncrease in accounts payableDecrease in accounts payableReissued treasury stockIssued note payable | ||
(Click to select)Purchased treasury stockReissued treasury stockIssued note payableDecrease in accounts payablePayment of dividendsIncrease in accounts payableRepayment of notes payableIssued common stock | ||
(Click to select)Payment of dividendsIssued note payableIssued common stockRepayment of notes payableIncrease in accounts payableReissued treasury stockPurchased treasury stockDecrease in accounts payable | ||
Net cash flows from financing activities | ||
(Click to select)Net increase in cashNet decrease in cash | ||
Cash at the beginning of the period | ||
Cash at the end of the period | $ | |
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