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:				$	179,040
Expenses:
Cost of goods sold	$	39,200
Operating expenses		59,940
Depreciation expense		18,300
Interest expense		8,530
Income tax expense		15,200
Total expenses					141,170
Net income				$	37,870

GREAT ADVENTURES, INC.
Balance Sheets
December 31, 2022 and 2021
									Increase (I) or
	2022				2021				Decrease (D)
Assets
Current assets:
Cash	$	234,020			$	59,880			$	174,140		(I)
Accounts receivable		48,860				0				48,860		(I)
Inventory		8,400				0				8,400		(I)
Other current assets		1,040				5,060				4,020		(D)
Long-term assets:
Land		640,000				0				640,000		(I)
Buildings		842,000				0				842,000		(I)
Equipment		76,420				47,000				29,420		(I)
Accumulated depreciation		(26,650	)			(8,350	)			18,300		(I)
Total assets	$	1,824,090			$	108,350
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	26,960			$	3,080			$	23,880		(I)
Interest payable		820				820
Income tax payable		15,200				14,140				1,060		(I)
Other current liabilities		25,200				0				25,200		(I)
Notes payable (current and long-term)		663,570				31,400				632,170		(I)
Stockholders’ equity:
Common stock		134,000				20,000				114,000		(I)
Paid-in capital		1,031,400				0				1,031,400		(I)
Retained earnings		58,940				34,150				24,790		(I)
Treasury stock		(132,000	)			0				(132,000	)	(I)
Total liabilities and stockholders’ equity	$	1,824,090			$	108,350

Additional Information for 2022:

1. Land of $640,000 was obtained by issuing a note payable to the seller.
2. Buildings of $842,000 and equipment of $29,420 were purchased using cash.
3. Monthly payments during the year reduced notes payable by $7,830.
4. Issued common stock for $1,140,000.
5. Purchased 11,400 shares of treasury stock for $22 per share.
6. Sold 5,400 shares of treasury stock at $23 per share.
7. Declared and paid a cash dividend of $13,080.

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 $0 Cash Flows from Investing Activities Net cash flow from investing activities 0 Cash Flows from Financing Activities Net cash flows from financing activities 0 0 Cash at the beginning of the period Cash at the end of the period $0 Note: Noncash Activities

Answer 1