Chapter 11, Problem 11.1APCP

Great Adventures

 (This is a continuation of the Great Adventures problem from earlier chapters.)

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)	$543,000
Sales revenue (MU watches)	118,000
Total revenues		$661,000
Expenses:
Cost of goods sold (watches)	70,000
Operating expenses	304,276
Depreciation expense	50,000
Interest expense	29,724
Income tax expense	57,000
Total expenses		511,000
Net income		$150,000

Additional Information for 2020:

  1.    Borrowed $500,000 in January 2020. Made 12 monthly payments during the year, reducing the balance of the loan by $37,638.

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

  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, 2020, using the indirect method.