Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020. AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5.900 $7,100 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) 35.000 18,100 Inventory 40,400 59,900 Prepaid rent 5,000 4.000 Equipment 153,300 129.100 Accumulated depreciation-equipment (35,000) (24,800) Copyrights 46,300 50,300 Total assets $312.900 $294,700 Accounts payable $46,500 $40,200 Income taxes payable 4,100 6,100 Salaries and wages payable 8.100 4.100 Short-term loans payable 8,000 10,100 Long-term loans payable 60,600 69,600 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 55,600 34,600 Total liabilities & stockholders' equity $312.900 $294.700 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $338,150 Cost of goods sold 175,700 Gross profit 162,450 Operating expenses 119,400 Operating income 43,050 Interest expense $11,300 Gain on sale of equipment 2,000 9.300 Income before tax 33,750 Income tax expense 6,750 Net income $27.000 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2020. 2 Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signes.-15,000 or in parenthesis es (15,000.) AYAYAI INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 27000 Adjustments to reconcile net income to Cash Flows from Financing Activities Depreciation Expense Gain on Sale of Equipment Increase in Accounts Receivable Decrease in Inventories Increase in Prepaid Rent Increase in Accounts Payable Decrease in Income Taxes Pavabile Todddddddddd II Increase in Salaries and Wages Payable Cash Flows from Operative Activities Cash Flows from lowestine Activities Borrowing on Short Term Loan Sale of Equipment Purchase of Equipment Cash Flows from westine Activities Cash Flows from Financing Activities V Borrowing on Short-Term Loan Borrowing on Long-Term Loan OOO Dividend Payments Cash Flows from Financing Activities Net Decrease in Cash DIOD Cash at Beginning of Period Cash at End of Period