RWP11-1 (Algo) Great Adventures Continuing Case The income statement, balance sheets, and additional information for Great...
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RWP11-1 (Algo) Great Adventures Continuing Case The income statement, balance sheets, and additional information for Great Adventures, Incorporated, are provided below. GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Net revenues: Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $39,100 58,720 18,150 8,281 15,100 $176,930 139, 351 $ 37,579 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 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 Income tax payable Other current liabilities. Notes payable (current and long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 2025 $ 226,384 $ 48,680 8,200 1,020 620,000 836,000 74,360 (26,450) $1,788, 194 $ 26,080 810 15, 100 24,600 643,615 132,000 1,013, 200 58,789 (126,000) $1,788, 194 2024 60,540 0 0 4,980 0 0 46,000 (8,300) $107,300 $ 3,040 810 14, 120 0 31, 200 20,000 0 34,050 0 $107,300 Increase (I) or Decrease (D) $ 165,844 (I) 48,680 (I) 8,200 (I) 3,960 (D) 620,000 (I) 836,000 (I) 28,360 (I) 18, 150 (I) (I) 980 (I) 24,600 (I) 612,415 (I) $ 23,040 (I) (I) 112,000 1,013, 200 24,739 (I) (126,000) (I) Additional Information for 2025: 1. Land of $620,000 was obtained by issuing a note payable to the seller. 2. Buildings of $836,000 and equipment of $28,360 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $7,585. 4. Issued common stock for $1,120,000. 5. Purchased 11,200 shares of treasury stock for $21 per share. 6. Sold 5,200 shares of treasury stock at $22 per share. 7. Declared and paid a cash dividend of $12,840. 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 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 RWP11-1 (Algo) Great Adventures Continuing Case The income statement, balance sheets, and additional information for Great Adventures, Incorporated, are provided below. GREAT ADVENTURES, INCORPORATED Income Statement For the Year Ended December 31, 2025 Net revenues: Expenses: Cost of goods sold Operating expenses Depreciation expense Interest expense Income tax expense Total expenses Net income $39,100 58,720 18,150 8,281 15,100 $176,930 139, 351 $ 37,579 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 GREAT ADVENTURES, INCORPORATED Balance Sheets December 31, 2025 and 2024 Income tax payable Other current liabilities. Notes payable (current and long-term) Stockholders' equity: Common stock Paid-in capital Retained earnings Treasury stock Total liabilities and stockholders' equity 2025 $ 226,384 $ 48,680 8,200 1,020 620,000 836,000 74,360 (26,450) $1,788, 194 $ 26,080 810 15, 100 24,600 643,615 132,000 1,013, 200 58,789 (126,000) $1,788, 194 2024 60,540 0 0 4,980 0 0 46,000 (8,300) $107,300 $ 3,040 810 14, 120 0 31, 200 20,000 0 34,050 0 $107,300 Increase (I) or Decrease (D) $ 165,844 (I) 48,680 (I) 8,200 (I) 3,960 (D) 620,000 (I) 836,000 (I) 28,360 (I) 18, 150 (I) (I) 980 (I) 24,600 (I) 612,415 (I) $ 23,040 (I) (I) 112,000 1,013, 200 24,739 (I) (126,000) (I) Additional Information for 2025: 1. Land of $620,000 was obtained by issuing a note payable to the seller. 2. Buildings of $836,000 and equipment of $28,360 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $7,585. 4. Issued common stock for $1,120,000. 5. Purchased 11,200 shares of treasury stock for $21 per share. 6. Sold 5,200 shares of treasury stock at $22 per share. 7. Declared and paid a cash dividend of $12,840. 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 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
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Related Book For
Financial Accounting
ISBN: 978-0078025549
3rd edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
Posted Date:
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