The Income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. $166,380 GRENT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net revenues : Expenses: Cost of goods sold $38,600 Operating expenses 52,620 Depreciation expense 17,400 Interest expense 7,034 Income tax expense 15,280 Total expenses Net income 130,934 $ 35, 446 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 Increase (1) or Decrease (D) 2021 188,204 47,780 7,200 920 $ 65,200 0 0 4,580 $123,004 (1) 47,780 (1) 7,200 (1) 3,660 (D) Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets 520,000 806,000 64,060 (25,450) $1,608,714 0 0 41,000 (8,050) $102,050 520,000 (1) 806,000 (1) 23,060 (1) 17,400 (1) $ 18,160 (1) 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 21,000 760 15,280 21,600 543,838 $ 2,840 760 14,020 0 30,200 1,260 (1) 21,600 (1) 513,638 (1) 122,000 922,200 58,036 (96,000) $1,608,714 20,000 0 33,550 0 $102,050 102,000 (1) 922,200 (1) 24,486 (I) (96,000) (1) Additional Information for 2022: 1. Land of $520,000 was obtained by issuing a note payable to the seller. 2. Buildings of $806,000 and equipment of $23,060 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $6,362. 4. Issued common stock for $1,020,000. 5. Purchased 10,200 shares of treasury stock for $16 per share. 6. Sold 4,200 shares of treasury stock at $17 per share. 7. Declared and paid a cash dividend of $12,320. GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net income $ 35,446 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense 17.400 Increase in accounts receivable (47,780) Increase in inventory (7.200) Decrease in other current assets 3,660 Increase in accounts payable 18,160 Increase in income tax payable 1,260 Increase in other current liabilities 21,600 $ 42,546 Net cash flow from operating activities Cash Flows from Investing Activities Purchase of equipment Purchase of buildings (23,060) (806,000) (829,060) Net cash flow from investing activities Cash Flows from Financing Activities Repayment of notes payable Issued common stock Purchased treasury stock Sale of treasury stock Payment of dividends 0 (786,514) Net cash flows from financing activities Net increase in cash Cash at the beginning of the period Cash at the end of the period $ (786,514)
