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) Sales revenue (MU watches) $551,000 126,000 Total revenues $ 677,000 Cost of goods sold (watches) Operating expenses Depreciation expense Interest expense Income tax expense 74,000 304,676 54,000 30,124 59,400 Total expenses 522,200 Net income S 154,800 GREAT ADVENTURES, INGC Balance Sheets December 31, 2020 and 2019 Increase (1) or 2020 2019 Decrease (D) Assets Current assets Cash Accounts receivable Inventory Other current assets 323,308 $142,000 $ 39,000 4,400 11,400 51,000 17,600 13,600 181,308 () 12,000 (I) 3,200 (1) 2,200 (1) Long-term assets: Land Buildings Equipment Accumulated depreciation 450,000 1,100,000 69,000 450,000 (1) 1,100,000 () 69,000 (80,250) (26,250) 54,000 (1) Total assets $1,944,258 $249,550 iabilities and Stockholders' Equity Current liabilities: 3,200 (1) 19,400 () 502,308 (I) $ 12,600 9,400 $ Accounts payable Interest payable Income tax payable 790 59,400 40,000 Long-term liabilities: Notes payable 534,308 32,000 Stockholders' Equity: Common stock Paid-in capital Retained earnings Treasury stock 125,000 1,105,000 177,160 (70,000) 25,000 0 142,360 100,000 (I) 1,105,000 (I) 34,800 (I) (70,000) () Total liabilities and stockholders' equity $1,944,258 249,550 Additional Information for 2020 1. Borrowed $540,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,692 2. Issued common stock for $1,200,000 3. Purchased 10,000 shares of treasury stock for $14 per share 4. Reissued 5,000 shares of treasury stock at $15 per share 5. Declared and paid a cash dividend of $120,000