Net revenues: Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Cost...

Transcribed Image Text:

Net revenues: Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $164,270 $38,500 51,400 17,250 6,785 14,500 128,435 $ 35,835 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 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 payable (current and long-term) Stockholders' equity: Increase (I) or 2025 2024 Decrease (D) $ 116,068 (I) $ 180,568 $ 64,500 47,600 0 47,600 (I) 7,000 0 7,000 (I) 900 4,500 3,600 (D) 500,000 0 500,000 (I) 800,000 800,000 (I) 62,000 40,000 22,000 (I) (25,250) $1,572,818 (8,000) $101,000. $ 20,800 17,250 (I) $ 2,800 750 14,000 $ 18,000 (I) -500 (I) 750 14,500. 21,000 0 21,000 (I) 523,883 30,000 493,883 (I) 120,000 20,000 100,000 (I) 904,000 0 904,000 (I) Retained earnings 57,885 33,450 24,435 (I)- Treasury stock (90,000) 0 (90,000) (I) Total liabilities and stockholders' equity $1,572,818 $101,000 Common stock Paid-in capital Additional Information for 2025: 1. Land of $500,000 was obtained by issuing a note payable to the seller. 2. Buildings of $800,000 and equipment of $22,000 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $6,117. 4. Issued common stock for $1,000,000. 5. Purchased 10,000 shares of treasury stock for $15 per share. 6. Sold 4,000 shares of treasury stock at $16 per share. 7. Declared and paid a cash dividend of $11,400. Required: Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) GREAT ADVENTURES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Net cash flow from operating activities Cash Flows from Investing Activities Net cash flow from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities Net revenues: Expenses: GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $164,270 $38,500 51,400 17,250 6,785 14,500 128,435 $ 35,835 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 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 payable (current and long-term) Stockholders' equity: Increase (I) or 2025 2024 Decrease (D) $ 116,068 (I) $ 180,568 $ 64,500 47,600 0 47,600 (I) 7,000 0 7,000 (I) 900 4,500 3,600 (D) 500,000 0 500,000 (I) 800,000 800,000 (I) 62,000 40,000 22,000 (I) (25,250) $1,572,818 (8,000) $101,000. $ 20,800 17,250 (I) $ 2,800 750 14,000 $ 18,000 (I) -500 (I) 750 14,500. 21,000 0 21,000 (I) 523,883 30,000 493,883 (I) 120,000 20,000 100,000 (I) 904,000 0 904,000 (I) Retained earnings 57,885 33,450 24,435 (I)- Treasury stock (90,000) 0 (90,000) (I) Total liabilities and stockholders' equity $1,572,818 $101,000 Common stock Paid-in capital Additional Information for 2025: 1. Land of $500,000 was obtained by issuing a note payable to the seller. 2. Buildings of $800,000 and equipment of $22,000 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $6,117. 4. Issued common stock for $1,000,000. 5. Purchased 10,000 shares of treasury stock for $15 per share. 6. Sold 4,000 shares of treasury stock at $16 per share. 7. Declared and paid a cash dividend of $11,400. Required: Prepare the statement of cash flows for the year ended December 31, 2025, using the indirect method. (Amounts to be deducted, cash outflows, and any decrease in cash should be indicated with a minus sign.) GREAT ADVENTURES, INCORPORATED Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Adjustments to reconcile net income to net cash flows from operating activities: Net cash flow from operating activities Net cash flow from operating activities Cash Flows from Investing Activities Net cash flow from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the period Cash at the end of the period Note: Noncash Activities