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, 2020
Revenues:
Service revenue (clinic, racing, TEAM)	$ 533,000
Sales revenue (MU watches)	108,000
Total revenues		$ 641,000
Expenses:
Cost of goods sold (watches)	65,000
Operating expenses	303,776
Depreciation expense	45,000
Interest expense	29,224
Income tax expense	54,000
Total expenses		497,000
Net income		$ 144,000

GREAT ADVENTURES, INC. Balance Sheets December 31, 2020 and 2019
	2020			2019			Increase (I) or Decrease (D)
Assets
Current assets:
Cash	$	289,666		$	133,000		$	156,666	(I)
Accounts receivable		37,500			30,000			7,500	(I)
Inventory		16,250			13,500			2,750	(I)
Other current assets		12,250			10,500			1,750	(I)
Long-term assets:
Land		450,000			0			450,000	(I)
Buildings		1,000,000			0			1,000,000	(I)
Equipment		60,000			60,000
Accumulated depreciation		(69,000)			(24,000)			45,000	(I)
Total assets	$	1,796,666		$	223,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	11,250		$	8,500		$	2,750	(I)
Interest payable		700			700
Income tax payable		54,000			35,500			18,500	(I)
Long-term liabilities:
Notes payable		439,916			27,500			412,416	(I)
Stockholders' Equity:
Common stock		120,000			20,000			100,000	(I)
Paid-in capital		1,106,000			0			1,106,000	(I)
Retained earnings		160,800			130,800			30,000	(I)
Treasury stock		(96,000)			0			(96,000)	(I)
Total liabilities and stockholders equity	$	1,796,666		$	223,000

Additional Information for 2020:

1. Borrowed $450,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,584.

2. Issued common stock for $1,200,000.

3. Purchased 12,000 shares of treasury stock for $16 per share.

4. Reissued 6,000 shares of treasury stock at $17 per share.

5. Declared and paid a cash dividend of $114,000.

Required:

Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method. (List cash outflows as negative amounts.)

GREAT ADVENTURES, INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities $ 144,000 Net income Adjustments to reconcile net income to net cash flows from operating activities: Depreciation expense Increase in accounts receivable Decrease in inventory Increase in other current assets Increase in accounts payable Increase in income tax payable 45,000 (7,500) (2,750) (1,750) 2,750 18,500 Net cash flow from operating activities $ 198,250 Cash Flows from Investing Activities (450,000) (1,000,000) Purchase of land Purchase of buildings