Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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) | $ | 574,000 | ||
Sales revenue (MU watches) | 126,000 | |||
Total revenues | $ | 700,000 | ||
Expenses: | ||||
Cost of goods sold (watches) | 68,200 | |||
Operating expenses | 288,276 | |||
Depreciation expense | 48,500 | |||
Interest expense | 33,034 | |||
Income tax expense | 55,500 | |||
Total expenses | 493,510 | |||
Net income | $ | 206,490 | ||
GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 | |||||||||
2014 | 2013 | Increase (I) or Decrease (D) | |||||||
Assets | |||||||||
Current assets: | |||||||||
Cash | $ | 542,425 | $ | 143,820 | $ | 398,605 | (I) | ||
Accounts receivable | 43,100 | 34,500 | 8,600 | (I) | |||||
Inventory | 15,500 | 13,200 | 2,300 | (I) | |||||
Other current assets | 12,200 | 9,400 | 2,800 | (I) | |||||
Long-term assets: | |||||||||
Land | 486,000 | 0 | 486,000 | (I) | |||||
Buildings | 990,000 | 0 | 990,000 | (I) | |||||
Equipment | 64,200 | 64,200 | |||||||
Accumulated depreciation | (75,250) | (26,750) | 48,500 | (I) | |||||
Total assets | $ | 2,078,175 | $ | 238,370 | |||||
Liabilities and Stockholders' Equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 12,900 | $ | 10,400 | $ | 2,500 | (I) | ||
Interest payable | 870 | 870 | |||||||
Income tax payable | 57,900 | 38,800 | 19,100 | (I) | |||||
Long-term liabilities: | |||||||||
Notes payable | 558,015 | 30,900 | 527,115 | (I) | |||||
Stockholders' Equity: | |||||||||
Common stock | 116,000 | 17,000 | 99,000 | (I) | |||||
Paid-in capital | 1,196,000 | 0 | 1,196,000 | (I) | |||||
Retained earnings | 236,790 | 140,400 | 96,390 | (I) | |||||
Treasury stock | (100,300) | 0 | (100,300) | (I) | |||||
Total liabilities and stockholders equity | $ | 2,078,175 | $ | 238,370 | |||||
Additional Information for 2014: | |
1. | Borrowed $570,000 in January 2014. Made 12 monthly payments during the year, reducing the balance of the loan by $42,885. |
2. | Issued common stock for $1.287 million. |
3. | Purchased 9,900 shares of treasury stock for $17 per share. |
4. | Reissued 4,000 shares of treasury stock at $19 per share. |
5. | Declared and paid a cash dividend of $110,100. |
Required: |
Prepare the statement of cash flows for the year ended December 31, 2014, using theindirectmethod.(Amounts to be deducted should be indicated with minus sign. Omit the "$" 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 accounts receivablePayment of dividendsIncrease in inventoryPurchase of buildingsPurchase of landIncrease in accounts payable | ||
Changes in current assets and current liabilities: | ||
(Click to select)Increase in inventoryDecrease in accounts payableIncrease in income tax payableIncrease in accounts payableIncrease in other current assetsDecrease in inventoryDepreciation expenseIncrease in accounts receivable | ||
(Click to select)Increase in accounts payableIncrease in income tax payableIncrease in inventoryIncrease in accounts receivableDepreciation expenseIncrease in other current assetsDecrease in inventoryDecrease in accounts payable | ||
(Click to select)Increase in inventoryDecrease in accounts payableDepreciation expenseDecrease in inventoryIncrease in income tax payableIncrease in accounts payableIncrease in other current assetsIncrease in accounts receivable | ||
(Click to select)Increase in income tax payableDepreciation expenseIncrease in accounts receivableDecrease in inventoryIncrease in other current assetsDecrease in accounts payableIncrease in accounts payableIncrease in inventory | ||
(Click to select)Increase in accounts payableIncrease in accounts receivableDepreciation expenseDecrease in accounts payableDecrease in inventoryIncrease in other current assetsIncrease in income tax payableIncrease in inventory | ||
Net cash flows from operating activities | $ | |
Cash Flows from Investing Activities | ||
(Click to select)Increase in inventoryDecrease in accounts payablePurchase of furnitureCashPurchase of buildingsIncrease in accounts payablePurchase of landDecrease in inventory | ||
(Click to select)Purchase of landCashPurchase of furnitureIncrease in accounts payableDecrease in inventoryIncrease in inventoryDecrease in accounts payablePurchase of buildings | ||
Net cash flows from investing activities | ||
Cash Flows from Financing Activities | ||
(Click to select)Issued common stockIncrease in accounts payablePurchased treasury stockDecrease in accounts payableIssued note payableReissued treasury stockPayment of dividendsRepayment of notes payable | ||
(Click to select)Payment of dividendsIssued note payableIssued common stockReissued treasury stockIncrease in accounts payablePurchased treasury stockDecrease in accounts payableRepayment of notes payable | ||
(Click to select)Issued common stockIssued note payableDecrease in accounts payablePurchased treasury stockPayment of dividendsRepayment of notes payableIncrease in accounts payableReissued treasury stock | ||
(Click to select)Decrease in accounts payablePurchased treasury stockIssued note payableIncrease in accounts payableReissued treasury stockPayment of dividendsIssued common stockRepayment of notes payable | ||
(Click to select)Increase in accounts payableReissued treasury stockRepayment of notes payablePurchased treasury stockIssued common stockIssued note payableDecrease in accounts payablePayment of dividends | ||
(Click to select)Issued note payableDecrease in accounts payablePurchased treasury stockIncrease in accounts payablePayment of dividendsReissued treasury stockRepayment of notes payableIssued common stock | ||
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 | $ | |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started