Question

$164,270 GREAT ADVENTURES, INC Income Statement For the year ended December 31, 2022 Net revenues : Expenses: Cost of goods sold $38,500 Operating expenses 51, 4ee Depreciation expense Interest expense Income tax expense 14,500 Total expenses Net income 17,250 6,785 128,435 $ 35,835 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 Increase (I) or Decrease (D) $ $ 64,500 180,568 47,689 7,880 Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets $116,068 47,6e0 7, eee 3,680 (I) (1) (I) (D) See 900 4 See See, eee 820, e 62, eee (25,250 $1,572,818 40, eee (8,000) $101,888 see, e00 see, eee 22,eee 17,250 (I) (I) (1) (1) $ 2,800 750 $ 18,000 (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 ,800 750 14,500 21, eee 523,883 14,000 500 (I) 21.080 (I) 493,883 (I) 30,000 20,eee 120,000 984, eee 57,885 (90,eee) $1,572,818 33,450 100, eee (I) 904,000 (1) 24,435 (1) (90, ece) (I) 5101,000 Additional Information for 2022:

Answer 1

GREAT ADVENTURES, INC.

Statement Cash Flows

For the Year Ended December 31, 2022

I. Cash Flows from Operating Activities

Net Income $35,835

Adjustments to reconcile net income to net cash flows from operating activities:

1. Depreciation Expense $17,250

2. Decrease in other Current Assets     $3,600

3. Increase in Accounts payable $18,000

4. Increase in Tax payable $500

5. Increase in other Current Liabilities $ 21,000

6. Increase in Accounts receivable (47,600)

7.Increase in Inventory $(7,000)

Net Cash Flow from Operating Activities    $41,585

Cash Flows from Investing Activities

1. Purchase of Building $(800,000)   

2. Purchase of Equipment     $(22,000)   

Net cash Flow from Investing Activities       ($822,000)

Cash Flows from Financing Activities

1. Proceeds from issue of Common stock $1,000,000

2. Payment on Notes payable $(6,117)

3. Purchase of Treasury Stock (10,000 shares at $15 per share) $(150,000)

4. Proceeds from re-purchase of Treasury Stock (4000 shares at $16 per share) $64,000

5. Cash Dividend paid    $(11,400)

Net Cash Flow from Financing Activities    $896,483

$116,068  

Cash at the beginning of the period $64,500

Cash at the end of the period $180,568

Note: Non-Cash Activities:

Land was obtained by issue of Notes payable to the Seller $500,000