Additional information for great adventures

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Reference no: EM131911666

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) $ 549,000 Sales revenue (MU watches) 124,000 Total revenues $ 673,000 Expenses: Cost of goods sold (watches) 73,000 Operating expenses 304,576 Depreciation expense 53,000 Interest expense 30,024 Income tax expense 58,800 Total expenses 519,400 Net income $ 153,600 GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019 2020 2019 Increase (I) or Decrease (D) Assets Current assets: Cash $ 295,570 $ 141,000 $ 154,570 (I) Accounts receivable 49,500 38,000 11,500 (I) Inventory 17,450 14,300 3,150 (I) Other current assets 13,450 11,300 2,150 (I) Long-term assets: Land 550,000 0 550,000 (I) Buildings 1,000,000 0 1,000,000 (I) Equipment 68,000 68,000 Accumulated depreciation (79,000) (26,000) 53,000 (I) Total assets $ 1,914,970 $ 246,600 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 12,450 $ 9,300 $ 3,150 (I) Interest payable 780 780 Income tax payable 58,800 39,500 19,300 (I) Long-term liabilities: Notes payable 523,820 31,500 492,320 (I) Stockholders' Equity: Common stock 120,000 20,000 100,000 (I) Paid-in capital 1,105,000 0 1,105,000 (I) Retained earnings 184,120 145,520 38,600 (I) Treasury stock (90,000) 0 (90,000) (I) Total liabilities and stockholders’ equity $ 1,914,970 $ 246,600 Additional Information for 2020: 1. Borrowed $530,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,680. 2. Issued common stock for $1,200,000. 3. Purchased 10,000 shares of treasury stock for $18 per share. 4. Reissued 5,000 shares of treasury stock at $19 per share. 5. Declared and paid a cash dividend of $115,000. Required: Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method. (List cash outflows as negative amounts.)

Reference no: EM131911666

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