Ayayai Inc., a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows and follows the policy of classifying interest paid as operating cash flows and dividends paid as financing cash flows. The comparative statement of financial position and income statement for Ayayai as of May 31, 2020, are as follows:

AYAYAI INC.

Statement of Financial Position

As at May 31

Current assets 2020 2019

Cash

$34,550 $20,650

Accounts receivable

81,700 56,500

Inventory

189,390 199,870

Prepaid expenses

8,740 7,400

Total current assets

314,380 284,420

Plant assets

601,500 511,500

Less: Accumulated depreciation

154,650 122,650

Net plant assets

446,850 388,850

Total assets

$761,230 $673,270

Current liabilities

Accounts payable

$118,900 $115,900

Salaries and wages payable

61,220 72,400

Interest payable

25,680 23,470

Total current liabilities

205,800 211,770

Mortgage payable

84,720 110,000

Total liabilities

290,520 321,770

Shareholders equity

Common shares

336,030 280,000

Retained earnings

134,680 71,500

Total shareholders equity

470,710 351,500

Total liabilities and shareholders equity

$761,230 $673,270

AYAYAI INC.

Income Statement

For the Year Ended May 31, 2020

Sales

$ 1,330,340

Cost of goods sold

810,000

Gross margin

520,340

Expenses

Salaries and wages expense

191,000

Interest expense

66,300

Other operating expenses

23,000

Depreciation expense

32,000

Total operating expenses

312,300

Operating income

208,040

Income tax expense

66,400

Net earnings

$ 141,640

The following is additional information about transactions during the year ended May 31, 2020, for Ayayai Inc., which follows IFRS.

1. Plant assets costing $90,000 were purchased by paying $47,000 in cash and issuing 5,000 common shares.

2. The other expenses relate to prepaid items.

3. In order to supplement its cash, Ayayai issued 4,000 additional common shares.

4. There were no penalties assessed for the repayment of the mortgage.

5. Cash dividends of $78,460 were declared and paid at the end of the fiscal year.

Prepare a statement of cash flows for Ayayai Inc. for the year ended May 31, 2020, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000