The income statement, balance sheet, and additional information for Great Adventures, Inc., are provided below.

Additional Information for 2014:
1. Borrowed $500,000 in January 2014. Made 12 monthly payments during the year, reducing the balance of the loan by $37,638.
2. Issued common stock for $1.2 million.
3. Purchased 10,000 shares of treasury stock for $15 per share.
4. Reissued 5,000 shares of treasury stock at $16 per share.
5. Declared and paid a cash dividend of $115,000.
Required:
Prepare the statement of cash flows for the year ended December 31, 2014, using the indirect method.

Transcribed Image Text:

GREAT ADVENTURES, INC. Income Statement For the year ended December 31, 2014 Service revenue (clinic, racing, TEAM) Sales revenue (MU watches) $543,000 Total revenues $661,000 70,000 304,276 50,000 29,724 57,000 Cost of goods sold (watches) Interest expense Income tax expense Total expenses 511,000 $150,000 Net income GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 Increase (l) or Decrease(D) 2013 -2014 2013 Current assets: S 322,362 $138,000 $ 184,362 () 10,000 (1) 3,000 (0) 2,000 () 45,000 35,000 17,000 13,000 11,000 Accounts receivable 14,000 Other current assets Long-term assets: $500,000 $ 0 $500,000 (1) 0 1,000,000 () 1,000,000 65,000 65,000 Accumulated depreciation 50,000 () Total assets $1,887,112 $237,750 Liabilities and Stockholders'E Current liabilities: Accounts payable Interest payable Income tax payable S 12,000 S 9,000 3,000 () 750 57,000 38,000 19,000 () Notes payable 492,362 30,000 462,362 ( Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock 20,000 20,000 0 75,000 140,000 100,000 () 1,105,000 () 35,000 () (75,000) (0) 1,105,000 Total liabilities and stockholders' equity 1,887112 $237750