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 $164,270 Net revenues: Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense $38,500 51,400 17,250 6,785 14,500 Total expenses 128,435 $ 35,835 Net income GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 Increase (I) or Decrease (D) 2022 2021 Assets Current assets: 64,500 $116,068 (1) 47,600 (I) 7,000 (I) 3,600 (D) Cash Accounts receivable Inventory Other current assets 180,568 47,600 7,000 900 4,500 Long-term assets: 0 500,000 (I) 800,000 (I) 22,000 (I) (25,250)(8,000)17,250 (I) Land Buildings Equipment Accumulated depreciation 500,000 800,000 62,000 40,000 $1 ,572,818 $101,000 Total assets Liabilities and Stockholders' Equity Current liabilities $20,800 750 14,500 21,000 523,883 2,800 $18,000 (I) Accounts payable Interest payable Income tax payable Other current liabilities 750 14,000 500 (I) 21,000 (I) 30,000 493,883 (I) Notes payable (current and long-term) Stockholders' equity: 20,000 100,000 (I) 904,000 (I) 24,435 (I) (90,000) (I) Common stock Paid-in capital Retained earnings Treasury stock 120,000 904,000 57,885 90,000 33,450 $1,572,818 $101,000 Total liabilities and stockholders' equity Additional Information for 2022: 1. Land of $500,000 was obtained by issuing a note payable to the seller. 2. Buildings of $800,000 and equipment of $22,000 were purchased using cash 3. Monthly payments during the year reduced notes payable by $6,117 4. Issued common stock for $1,000,000 5. Purchased 10,000 shares of treasury stock for $15 per share. 6. Sold 4,000 shares of treasury stock at $16 per share 7. Declared and paid a cash dividend of $11,400 Required: Prepare the statement of cash flows for the year ended December 31, 2022, using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) GREAT ADVENTURES, INC Statement of Cash Flows For the Year Ended December 31, 2022 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 Net cash flow from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities

Answer 1

	Great Adventures inc
	Statement of cash flow
	for the year ended december 31,2022
	Cash flows from Operating activities
	Net income for the year					35,835
	Adjustments to reconcile net income to net cash
	flows from operating activities
	Depreciation expense					17,250
	increase in accounts receivable					-47,600
	increase in inventory					-7,000
	decrease in current assets					3,600
	increase in accounts payable					18,000
	increase in income taxes payable					500
	increase in other current liabilities					21,000
	net cash provided by operating activities						41,585
	cash flows from investing activities
	purchase of building					-800,000
	purchase of equipment					-22,000
	net cash used by operating activities						-822,000
	Cash flows from financing activities
	issued common stock					1,000,000
	reissued treasury stock					64000
	payment of dividends					-11400
	purchased treasury stock					-150,000
	repayment of notes payable					-6117
	net cash provided by financing activities						896,483
	net increase in cash						116,068
	cash at the beginning of the year						64500
	cash at year end						180,568