Ayayai Company had the following information available at the end of 2020. AYAYAI COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $20,200 $12,000 Short-term investments 31,400 40,100 Accounts receivable 60,500 50,300 Inventory 96,300 89,600 Prepaid expenses 15,700 25,800 Land 198,000 258,100 Buildings 646,400 646,400 Accumulated depreciation-buildings (74,700) (57,000) Equipment 347,800 149,000 Accumulated depreciation equipment (41,300) 0 Patents 67,400 71,300 Total assets $1,367,700 $1,285,600 Accounts payable $80,900 $87,300 Income taxes payable 26,600 20,900 Salaries and wages payable 0 8,000 Notes payable, short-term 25,000 25,000 Long-term notes payable 49,600 74,900 Bonds payable 595,600 595,600 Discount on bonds payable (33,200) (40,900) Common stock 109,700 99,300 Paid-in capital in excess of par-common stock 250,500 214,900 Retained earnings 263,000 200,600 Total liabilities and stockholders' equity $1,367,700 $1,285,600 AYAYAI COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $1,553,000 Cost of goods sold 982,000 Gross margin 571,000 Operating expenses Selling expenses $159,900 Administrative expenses 117,200 Depreciation/Amortization expense 62,900 Total operating expenses 340,000 Income from operations 231,000 Other revenues/expenses Gain on sale of land 20,800 Loss on sale of short-term investment (8,100) Dividend revenue 4,100 Interest expense (95,300) (78,500) Income before taxes 152,500 Income tax expense 63,000 Net income 89,500 Dividends to common stockholders (27,100) To retained earnings $62,400 Prepare a statement of cash flows for Ayayai Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).) Prepare a statement of cash flows for Ayayai Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis eg. (15,000).) AYAYAI COMPANY Statement of Cash Flows V For the Year Ended December 31, 2020 (Direct Method) Cash Flows from Operating Activities Cash receipts: Cash Received from Customers 1542800 Dividends Received $ Cash payments: Cash Paid to Suppliers Cash Paid for Operating Expenses Cash Paid for Taxes Cash Paid for Interest Net Cash Provided by Operating Activities $ Cash Flows from Investing Activities Sale of Short-term Investments Sale of Land Purchase of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Proceeds from Issuance of Common Stock V Principal Payment on Long-term Debt Dividends Paid Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 $ (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Reconciliation Schedule Reconciliation of Net Income to Net Cash Provided by Operating Activities Net Income $ Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation/Amortization Expense $ Decrease in Prepaid Expenses Increase in Salaries and Wages Payable