Great Adventures Problem 11-1 The income statement, balance sheet, and additional information for Great Adventures, Inc., are provided below. GREAT ADVENTURES, INC. Income Statement For the Year Ended December 31, 2017 Revenues: Service revenue (clinic, racing, TEAM) $ 525,000 Sales revenue (MU watches) 100,000 Total revenues $ 625,000 Expenses: Cost of goods sold (watches) 61,000 Operating expenses 303,376 Depreciation expense 41,000 Interest expense 28,824 Income tax expense 51,600 Total expenses 485,800 Net income $ 139,200 GREAT ADVENTURES, INC. Balance Sheet December 31, 2017 and 2016 2017 2016 Increase (I) or Decrease (D) Assets Current assets: Cash $ 301,714 $ 129,000 $ 172,714 (I) Accounts receivable 31,500 26,000 5,500 (I) Inventory 15,650 13,100 2,550 (I) Other current assets 11,650 10,100 1,550 (I) Long-term assets: Land 300,000 0 300,000 (I) Buildings 1,100,000 0 1,100,000 (I) Equipment 56,000 56,000 Accumulated depreciation (64,000) (23,000) 41,000 (I) Total assets $ 1,752,514 $ 211,200 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 10,650 $ 8,100 $ 2,550 (I) Interest payable 660 660 Income tax payable 51,600 33,500 18,100 (I) Long-term liabilities: Notes payable 397,964 25,500 372,464 (I) Stockholders' Equity: Common stock 125,000 25,000 100,000 (I) Paid-in capital 1,106,000 0 1,106,000 (I) Retained earnings 138,640 118,440 20,200 (I) Treasury stock (78,000) 0 (78,000) (I) Total liabilities and stockholders equity $ 1,752,514 $ 211,200 Additional Information for 2017: 1. Borrowed $410,000 in January 2017. Made 12 monthly payments during the year, reducing the balance of the loan by $37,536. 2. Issued common stock for $1,200,000. 3. Purchased 12,000 shares of treasury stock for $13 per share. 4. Reissued 6,000 shares of treasury stock at $14 per share. 5. Declared and paid a cash dividend of $119,000. Required: Prepare the statement of cash flows for the year ended December 31, 2017, using the indirect method.(List cash outflows as negative amounts.)
