Question

The income statement, balance sheets, and additional informationfor Great Adventures, Inc., are provided below.

 

GREAT ADVENTURES, INC.

Income Statement

For the year ended December 31, 2014

  Revenues:

         Servicerevenue (clinic, racing, TEAM)$564,000   

         Sales revenue(MU watches)131,000   

       Total revenues$695,000   

  Expenses:

         Cost of goodssold (watches)69,100   

         Operatingexpenses294,276   

         Depreciationexpense48,900   

         Interestexpense23,181   

         Income taxexpense56,400   

            Totalexpenses491,857   

  Net income$203,143   

 

GREAT ADVENTURES, INC.

Balance Sheet

December 31, 2014 and 2013

20142013Increase (I)

or

Decrease (D)

   Assets

  Current assets:

      Cash$464,424  $147,980   $316,444   (I)

      Accounts receivable44,200  34,100   10,100  (I)

      Inventory16,600  12,800   3,800  (I)

      Other current assets12,500  9,300   3,200  (I)

  Long-termassets:

      Land493,000  0   493,000  (I)

      Buildings1,000,000  0   1,000,000  (I)

      Equipment63,900  63,900  

      Accumulated depreciation(74,450)(25,550)  48,900  (I)

        Total assets$2,020,174  $242,530  

  Liabilities and Stockholders'Equity

  Currentliabilities:

     Accounts payable$13,200  $10,900   $2,300  (I)

     Interest payable930  930  

     Income tax payable57,400  38,000   19,400  (I)

  Long-termliabilities:

     Notes payable401,801  31,900   369,901  (I)

  Stockholders'Equity:

     Common stock118,000  19,000   99,000  (I)

     Paid-in capital1,291,900  0   1,291,900  (I)

     Retained earnings231,943  141,800   90,143  (I)

     Treasury stock(95,000)0   (95,000)(I)

        Total liabilitiesand stockholders? equity$2,020,174  $242,530  

AdditionalInformation for 2014:

1.

Borrowed $400,000 in January 2014. Made 12 monthly paymentsduring the year, reducing the balance of the loan by $30,099.

2.Issued common stock for$1,386,000.

3.Purchased 9,900 shares oftreasury stock for $19 per share.

4.Reissued 4,900 shares oftreasury stock at $20 per share.

5.Declared and paid a cashdividend of $113,000.

 

Required:

Prepare the statement of cash flows for the year ended December31, 2014, using the indirect method.(Amounts to bededucted and cash outflows should be indicated with minussign.)

Cash flows from operating activities:

Adjustments for Non-Cash Effects:

Net Cash Flows from Operating Activities:

Cash Flows from Investing Activities:

Net Cash Flows from Investing Activities:

Cash Flows from Financing Activities:

Net Cash Flows from Financing Activities:

Net increase (decrease) in cash:

Cash at the beginning of the period:

Cash at the end of the period: