Question: 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
| 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, 2014 | ||||
| Revenues: | ||||
| Service revenue (clinic, racing, TEAM) | $ | 581,000 | ||
| Sales revenue (MU watches) | 129,000 | |||
| Total revenues | $ | 710,000 | ||
| Expenses: | ||||
| Cost of goods sold (watches) | 69,000 | |||
| Operating expenses | 289,276 | |||
| Depreciation expense | 49,000 | |||
| Interest expense | 26,081 | |||
| Income tax expense | 55,600 | |||
| Total expenses | 488,957 | |||
| Net income | $ | 221,043 | ||
| GREAT ADVENTURES, INC. Balance Sheet December 31, 2014 and 2013 | |||||||||
| 2014 | 2013 | Increase (I) or Decrease (D) | |||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash | $ | 575,546 | $ | 144,760 | $ | 430,786 | (I) | ||
| Accounts receivable | 44,600 | 33,800 | 10,800 | (I) | |||||
| Inventory | 16,400 | 13,000 | 3,400 | (I) | |||||
| Other current assets | 12,600 | 10,100 | 2,500 | (I) | |||||
| Long-term assets: | |||||||||
| Land | 481,000 | 0 | 481,000 | (I) | |||||
| Buildings | 990,000 | 0 | 990,000 | (I) | |||||
| Equipment | 63,400 | 63,400 | |||||||
| Accumulated depreciation | (74,750) | (25,750) | 49,000 | (I) | |||||
| Total assets | $ | 2,108,796 | $ | 239,310 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 13,400 | $ | 9,900 | $ | 3,500 | (I) | ||
| Interest payable | 910 | 910 | |||||||
| Income tax payable | 57,700 | 38,700 | 19,000 | (I) | |||||
| Long-term liabilities: | |||||||||
| Notes payable | 446,543 | 30,400 | 416,143 | (I) | |||||
| Stockholders' Equity: | |||||||||
| Common stock | 118,000 | 19,000 | 99,000 | (I) | |||||
| Paid-in capital | 1,299,000 | 0 | 1,299,000 | (I) | |||||
| Retained earnings | 247,343 | 140,400 | 106,943 | (I) | |||||
| Treasury stock | (74,100) | 0 | (74,100) | (I) | |||||
| Total liabilities and stockholders equity | $ | 2,108,796 | $ | 239,310 | |||||
| Additional Information for 2014: | |
| 1. | Borrowed $450,000 in January 2014. Made 12 monthly payments during the year, reducing the balance of the loan by $33,857. |
| 2. | Issued common stock for $1.386 million. |
| 3. | Purchased 9,900 shares of treasury stock for $19 per share. |
| 4. | Reissued 6,000 shares of treasury stock at $21 per share. |
| 5. | Declared and paid a cash dividend of $114,100. |
| Required: |
| Prepare the statement of cash flows for the year ended December 31, 2014, using theindirectmethod.(Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) |
| GREAT ADVENTURES, INC. Statement of Cash Flows For the year ended December 31, 2012 | ||
| Cash Flows from Operating Activities | ||
| (Click to select)Net incomeNet loss | $ | |
| Adjustments for noncash effects: | ||
| (Click to select)Increase in other current assetsDepreciation expenseIncrease in inventoryPurchase of buildingsPurchase of landPayment of dividendsIncrease in accounts payableIncrease in accounts receivable | ||
| Changes in current assets and current liabilities: | ||
| (Click to select)Increase in accounts receivableDepreciation expenseIncrease in other current assetsIncrease in accounts payableIncrease in income tax payableDecrease in inventoryIncrease in inventoryDecrease in accounts payable | ||
| (Click to select)Increase in accounts receivableIncrease in accounts payableIncrease in other current assetsIncrease in inventoryIncrease in income tax payableDecrease in accounts payableDecrease in inventoryDepreciation expense | ||
| (Click to select)Decrease in accounts payableIncrease in income tax payableIncrease in accounts receivableIncrease in inventoryDecrease in inventoryIncrease in accounts payableIncrease in other current assetsDepreciation expense | ||
| (Click to select)Increase in other current assetsIncrease in accounts receivableIncrease in inventoryDecrease in inventoryDepreciation expenseIncrease in accounts payableDecrease in accounts payableIncrease in income tax payable | ||
| (Click to select)Depreciation expenseIncrease in inventoryIncrease in accounts payableDecrease in inventoryIncrease in other current assetsIncrease in accounts receivableDecrease in accounts payableIncrease in income tax payable | ||
| Net cash flows from operating activities | $ | |
| Cash Flows from Investing Activities | ||
| (Click to select)Decrease in accounts payableIncrease in accounts payablePurchase of buildingsPurchase of landIncrease in inventoryDecrease in inventoryPurchase of furnitureCash | ||
| (Click to select)CashDecrease in accounts payableIncrease in inventoryPurchase of buildingsPurchase of landDecrease in inventoryIncrease in accounts payablePurchase of furniture | ||
| Net cash flows from investing activities | ||
| Cash Flows from Financing Activities | ||
| (Click to select)Reissued treasury stockPurchased treasury stockIssued note payablePayment of dividendsRepayment of notes payableIssued common stockDecrease in accounts payableIncrease in accounts payable | ||
| (Click to select)Repayment of notes payableReissued treasury stockPayment of dividendsIncrease in accounts payablePurchased treasury stockDecrease in accounts payableIssued common stockIssued note payable | ||
| (Click to select)Purchased treasury stockIncrease in accounts payableDecrease in accounts payableReissued treasury stockRepayment of notes payablePayment of dividendsIssued common stockIssued note payable | ||
| (Click to select)Repayment of notes payablePayment of dividendsPurchased treasury stockIssued common stockIncrease in accounts payableDecrease in accounts payableReissued treasury stockIssued note payable | ||
| (Click to select)Purchased treasury stockReissued treasury stockIssued note payableDecrease in accounts payablePayment of dividendsIncrease in accounts payableRepayment of notes payableIssued common stock | ||
| (Click to select)Payment of dividendsIssued note payableIssued common stockRepayment of notes payableIncrease in accounts payableReissued treasury stockPurchased treasury stockDecrease in accounts payable | ||
| Net cash flows from financing activities | ||
| (Click to select)Net increase in cashNet decrease in cash | ||
| Cash at the beginning of the period | ||
| Cash at the end of the period | $ | |
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