stockholders' equityAdditional Information for 2022:1 Land of $820,000 was obtained by issulng a note payable to the seller.2. Buldings of $896,000 and equipment of $38,960 were purchased using cash.3. Monthly payments during the year reduced notes payable by $10,033.4. Issued common stock for $1,320,000.5. Purchased 13,200 shares of treasury stock for $31 per share.6. Sold 7,200 shares of treasury stock at $32 per share.7. Declared and paid a cash dividend of $15,240.Required:Prepare the statement of cash flows for the year ènded December 31, 2022, using the indirect method. (List cashoutflows and any decrease in cash as negative amounts.)FUr UE Tear Cnueu Uecemuer at EUECash Flows from OperatingActivitiesAdjustments to reconcile net incometo net cash flows from operatingactivities:Net cash flow from operatingactivitiesCash Flows from InvestingActivitiesNet cash flow from investingactivitiesCash Flows from FinancingActivitiesNet cash flows from financingactivitiesCash at the beginning of the periodCash at the end of the periodNote: Noncash Activities The income statement, balance sheets, and additional information for Great Adventures, Inc, are provided below.GREAT ADVENTURES, INC.Income StatementFor the year ended December 31, 2022Net revenues:Expenses:Cost of goods soldOperating expensesDepreciation expenseInterest expenseIncome tax expenseTotal expenses$198,830$40,10070,92019,65010,77516,100157,545$ 40,485Net incomeGREAT ADVENTURES, INC.Balance SheetsDecember 31, 2022 and 2021Increase (I) orDecrease (D)20222021AssetsCurrent assets:CashAccounts receivableInventoryOther current assetsLong-term assets:LandBuildingsEquipmentAccumu lated depreciationTotal assets$ 302,74250, 48010, 2001,220$ 248,802 (I)50,480 (I)10,200 (I)4,560 (D)$ 53,9405,780820,000896,00094,960(28,450)$2,147,152 $117,800820,eee (I)896, e00 (I)38,960 (I)19,650 (I)56,000(8,800)Liabilities andStockholders EquityCurrent liabilities:Accounts payableInterest payableIncome tax payableOther current liabilitiesNotes payable (current andlong-term)Stockholders' equity:Common stockPaid-in capitalRetained earningsTreasury stockTotal liabilities andstockholders' equity34,88091016, 10030,6ee843,167$ 3,44091014,32031,448 (I)1,780 (I)30,6ee (I)33,2ееB09,967 (I)152,0001,195, 20060, 295(186, 000)$2,147,152 $117,80020,000132,00e (I)1,195,200 (I)25,245 (I)(186, eee) (I)35,e5eAdditional Information for 2022:1 Land of $820,000 was obtained by issulng a note payable to the seller.2. Buildings of $896,000 and equipment of $38,960 were purchesed using cash.3. Monthly payments during the year reduced notes payable by $10,033.-4. Issued common stock for $1,320.000.5 Purchased 13.200 shares of treasury stock for $31 per share.6. Sold 7,200 shares of treasury stock at $32 per share.7. Declared and paid a cash dividend of $15,240.

Cash Flow Statement - Statement of Cash Flow shows the movement of cash in the financial year. It…

stockholders equity Additional Information for 2022: 1. Land of $820,000 was obtained by issuing a note payable to the seller. 2. Buildings of $896,000 and equipment of $38,960 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $10,033. 4. Issued common stock for $1,320,000, 5. Purchased 13,200 shares of treasury stock for $31 per share. 6. Sold 7.200 shares of treasury stock at $32 per share. 7. Declared and paid a cash dividend of $15,240. Required: Prepare the statement of cash flows for the year ended December 31, 2022, using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) 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

stockholders equity Additional Information for 2022: 1. Land of $820,000 was obtained by issuing a note payable to the seller. 2. Buildings of $896,000 and equipment of $38,960 were purchased using cash. 3. Monthly payments during the year reduced notes payable by $10,033. 4. Issued common stock for $1,320,000, 5. Purchased 13,200 shares of treasury stock for $31 per share. 6. Sold 7.200 shares of treasury stock at $32 per share. 7. Declared and paid a cash dividend of $15,240. Required: Prepare the statement of cash flows for the year ended December 31, 2022, using the indirect method. (List cash outflows and any decrease in cash as negative amounts.) 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

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

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