Question

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, 2022 Net revenues: $187,480 Expenses: Cost of goods sold $39,600 Operating expenses 64,820 Depreciation expense 18,900 Interest expense 9,528 Income tax expense 15,600 Total expenses 148,448 Net income $ 39,032 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 Increase (I) or Decrease (D) Assets Current assets: Cash $ 264,564 $ 57,240 $ 207,324 (1)

Answer 1

STATEMENT OF CASH FLOWS
Cash flows from operating activities:
Net income		$          39,032
Adjustments to reconcile net income to net cash flows from operations:
Depreciation expenses	$         18,900
Increase in accounts receivable	$        -49,580
Increase in inventory	$          -9,200
Decrease in other current assets	$            4,260
Increase in accounts payable	$         27,240
Increase in other current liabilities	$         27,600
Increase in income tax payable	$            1,380	$          20,600
Net cash flow from operating activities		$          59,632
Cash flows from investing activities:
Purchase of equipment	$        -33,660
Purchase of Buildings	$    -8,66,000
Net cash flow from investing activities		$    -8,99,660
Cash flows from financing activities:
Issued notes payable
Repayment of notes payable	$          -8,808
Issued common stock	$   12,20,000
Purchased treasury stock	$    -3,17,200
Sale of treasury stock	$      1,67,400
Payment of dividends	$        -14,040
Net cash flows from financing activities		$    10,47,352
Net decrease in cash		$      2,07,324
Cash at the beginning of the period		$          57,240
Cash at the end of the period		$      2,64,564
Note:
Noncash activities:
1] Acquired land for $720,000 by issuing notes payable.