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, 2020 Revenues: Service revenue (clinic, racing, TEAM) $ 553,000 Sales revenue (MU watches) 128,000 $ 681,000 Total revenues Expenses: Cost of goods sold (watches) Operating expenses Depreciation expense Interest expense Income tax expense 75,000 304,776 55,000 30,224 60,000 Total expenses 525,000 Net income $ 156,000 8 II 11 11 GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase (1) or 2020 2019 Decrease (D) Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation $ 286,046 52,500 17,750 13,750 $ 143,000 40,000 14,500 11,500 143,046 (1) 12,500 (0) 3,250 (0) 2,250 (0) 400,000 1,200,000 70,000 (81,500) 400,000 (0) 1,200,000 (1) 70,000 (26,500) 55,000 (1) Total assets $1,958,546 $252,500 Liabilities and Stockholders' Equity GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 Increase (1) 2020 2019 Decrease (D) $ Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation $ 286,046 52,500 17,750 13,750 $ 143,000 40,000 14,500 11,500 143,046 (0) 12,500 (0) 3,250 (0) 2,250 (0) 400,000 (0) 1,200,000 (0) 55,000 (1) 400,000 1,200,000 70,000 (81,500) 70,000 (26,500) $252,500 Total assets $1,958,546 12,750 $ 9,500 800 800 60,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' Equity Common stock Paid-in capital Retained earnings Treasury stock 544,796 40,500 32,500 30,000 0 139,200 3,250 (1) 19,500 (1) 512,296 (1) 100,000 () 1,105,000 (1) 31,000 (0) (65,000) (0) 130,000 1,105,000 170,200 (65,000) Total liabilities and stockholders' equity $1,958,546 $ 252,500 Additional Information for 2020: 1. Borrowed $550,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,704 2. Issued common stock for $1,200,000. 3. Purchased 10,000 shares of treasury stock for $13 per share. 4. Reissued 5,000 shares of treasury stock at $14 per share. 5. Declared and paid a cash dividend of $125,000. Additional Information for 2020: 1. Borrowed $550,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,704. 2. Issued common stock for $1,200,000. 3. Purchased 10,000 shares of treasury stock for $13 per share. 4. Reissued 5,000 shares of treasury stock at $14 per share. 5. Declared and paid a cash dividend of $125,000. Required: Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method. (List cash outflows as negal GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Cash Flows from Investing Activities Natashommistici Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Cash Flows from Investing Activities . Net cash flow from investing activities Cash Flows from Financing Activities Net cash flow from financing activities Cash at the beginning of the period Cash at the end of the period