Ayayai Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: AYAYAI INC. Comparative Statement of Financial Position December 31 2020 2019 Cash $ 52,610 $ 25,010 Accounts receivable 58,000 51,010 Inventory 40,000 60,010 Prepaid rent 5,020 4,010 Equipment 156,020 130,010 Accumulated depreciation-equipment (35,020) (25,010) Goodwill 20,000 52,000 Total assets $ 296,630 $ 297,040 Accounts payable $ 46,020 $ 40,010 Income tax payable 4,000 6,010 Salaries and wages payable 8,010 4,010 Short-term loans payable 8,000 10,010 Long-term loans payable 60,000 71,000 Common shares 130,000 130,000 Retained earnings 40,600 36,000 Total liabilities and shareholders' equity $ 296,630 297,040 AYAYAI INC. Income Statement Year Ending December 31, 2020 Sales revenue $ 340,100 Cost of goods sold 165,000 Gross margin 175,100 Operating expenses 120,000 Operating income 55,100 Interest expense $ 11,500 32,000 Impairment loss-goodwill Gain on disposal of equipment (2,100) 41,400 Income before income tax 13,700 Income tax expense 4,100 Net income $ 9,600 Additional information: 1. 2. Dividends on common shares in the amount of $5,000 were declared and paid during 2020. Dividends paid are treated as finar Depreciation expense is included in operating expenses, as is salaries and wages expense of $ 69,500. Equipment with a cost of $ 22,000 that was 70% depreciated was sold during 2020. 3. . Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).) Ayayai Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers + $ Cash Paid to Suppliers for Goods and Services Cash Paid for Other Operating Expenses Cash Paid to and on Behalf of Employees Cash Paid for Interest + Cash Paid for Taxes Net Cash Provided by Financing Activities Cash Flows from Investing Activities Proceeds on Sale of Equipment Purchase of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payments on Short-Term Loans Principal Payments on Long-Term Loans Dividends Paid Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 $