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The income statement, balance sheets, and additional information for Great Adventures, Inc., are provided below. $191,700 GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2022 Net revenues: Expenses: Cost of goods sold $39,800 Operating expenses 67,260 Depreciation expense 19,200 Interest expense 10,027 Income tax expense 15,800 Total expenses Net income 152,087 $ 39, 613 GREAT ADVENTURES, INC. Balance Sheets December 31, 2022 and 2021 2022 2021 279, 834 49,940 9,600 1,160 $ 55,920 Increase (I) or Decrease (D) I 223,914 (1) 49,940 (I) 9,600 (I) 4,380 (D) 760,000 (1) 878,000 (I) 35,780 (1) 19,200 (1) Assets Current assets: Cash Accounts receivable Inventory Other current assets Long-term assets: Land Buildings Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Other current liabilities Notes Davable (current and long-term) 5,540 760,000 878,000 88,780 (27,850) $2,039,464 @ 53,000 (8,650) $114,650 $ $ 32,240 880 15,800 28,800 783.301 $ 3,320 880 14,260 28,920 (I) 1,540 (1) 28,800 (1) 750.701 (1) 32.600 0 32,600 28,800 Notes payable (current and long-term) 783, 301 Stockholders' equity: Common stock 146,000 Paid-in capital 1,140,600 Retained earnings 59,843 Treasury stock (168,000) Total liabilities and stockholders' equity $2,839,464 20,000 28,800 (I) 750,701 (I) 126,000 (1) 1,140,600 (I) 25,093 (I) (168,000) (I) 34,750 @ $114,650 Additional Information for 2022: 1. Land of $760,000 was obtained by Issuing a note payable to the seller. 2. Buildings of $878,000 and equipment of $35,780 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $9,299. 4. Issued common stock for $1,260,000. 5. Purchased 12,600 shares of treasury stock for $28 per share. 6. Sold 6,600 shares of treasury stock at $29 per share. 7. Declared and paid a cash dividend of $14,520. 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 Net income $ 39,613 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense 19,200 Increase in inventory (9,600) Increase in accounts receivable (49,940) Decrease in other current assets 4,380 Increase in accounts payable 28,920 Increase in income tax payable 1,540 Increase in other current liabilities 28,800 PS $ 62,913 Net cash flow from operating activities Cash Flows from Investing Activities Purchase of buildings Purchase of equipment (878,000) (35,780) (913,780) Net cash flow from investing activities Cash Flows from Financing Activities Payment of dividends Repayment of notes payable Issued common stock Purchased treasury stock Sale of treasury stock (14,520) (9,299) 1,260,000 (352,800) 191,400 Sale of treasury stock 191,400 Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Purchase land issuing a note payable 1,074,781 223,914 55,920 279,834 $ $ 760,000

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