Ayayai Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2020:

AYAYAI Inc.

Comparative Statement of Financial Position

December 31

2020 2019

Cash

$ 61,450 $ 53,750

Accounts receivable

57,200 50,500

Inventory

40,800 69,500

Prepaid rent

5,100 3,900

Equipment

167,000 130,000

Accumulated depreciationequipment

( 35,700)

( 25,200)

Total assets

$ 295,850 $ 282,450

Accounts payable

$ 50,000 $ 36,000

Income tax payable

3,700 6,000

Long-term loans payable

60,500 69,500

Common shares

129,300 129,300

Retained earnings

52,350 41,650

Total liabilities and shareholders equity

$ 295,850 $ 282,450

AYAYAI Inc.

Income Statement

Year Ending December 31, 2020

Sales revenue $ 379,000

Cost of goods sold

206,500

Gross margin

172,500

Operating expenses

119,700

Operating income

52,800

Interest expense

$ 11,400

Gain on disposal of equipment

( 2,800)

8,600

Income before income tax

44,200

Income tax expense

20,600

Net income

$ 23,600

Additional information:

1. Dividends on common shares in the amount of $ 12,900 were declared and paid during 2020.

2. Depreciation expense of $ 24,500 is included in operating expenses.

3. Equipment with a cost of $ 20,000 that was 70% depreciated was sold during 2020.

Prepare a statement of cash flows 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).)

AYAYAI Inc.

Statement of Cash Flows (Direct Method)

$

$

$

Question 24 of 24 Ayayai Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2020: AYAYAI Inc. Comparative Statement of Financial Position December 31 2020 2019 Cash $ 61,450 $53,750 Accounts receivable 57,200 50,500 Inventory 40,800 69,500 5.100 3,900 167,000 130,000 Prepaid rent Equipment Accumulated depreciation-equipment Total assets (35,700) (25,200) $ 295,850 $ 282,450 Accounts payable $ 50,000 $36,000 Income tax payable 3.700 6,000 Long-term loans payable 60,500 69.500 Common shares 129,300 129.300 Retained earnings 52,350 41.650 Total liabilities and shareholders equity $295,850 $ 282,450 Question 24 of 24 VSGVO Total liabilities and shareholders' equity $295,850 $282,450 AYAYAI Inc. Income Statement Year Ending December 31, 2020 Sales revenue $379,000 Cost of goods sold 206,500 Gross margin 172,500 Operating expenses 119.700 Operating income 52,800 Interest expense $ 11,400 Gain on disposal of equipment (2.800) 8,600 Income before income tax 44,200 Income tax expense 20,600 Net income $ 23,600 Additional information: 1. Dividends on common shares in the amount of $ 12,900 were declared and paid during 2020. MacBook Pro Additional information: 1. 2. Dividends on common shares in the amount of $ 12,900 were declared and paid during 2020. Depreciation expense of $ 24,500 is included in operating expenses. Equipment with a cost of $ 20,000 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. - 15,000 or in parenthesis e.g. (15,000).) AYAYAI Inc. Statement of Cash Flows (Direct Method) . $ MacBool D repare a statemICHTE UT TAITUung the uncut metus now Mount trutucurcuyc turr UT WIETT TRENCE -15,000 or in parenthesis e.g. (15,000).) AYAYAI Inc. Statement of Cash Flows (Direct Method) $ MacBook Pro Tor 24 01 24 - /20 e Textbook and Media Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.. - 15,000 or in parenthesis e.s. (15,000).) AYAYAI CORPORATION Statement of Cash Flows (Indirect Method) MacBook Pro -720 Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signe. -15,000 or in parenthesis e.g. (15,000).) AYAYAI CORPORATION Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to net cash provided by operating activities: $ Adjustments to reconcile net income to net cash provided by operating activities: $ . . Question 24 of 24 MacBook Pro OSC BO SR 2. # 3 $ 2 W 44 % 5 a> & 7 8 ob E Q A R T Y K C E L slock A S bl D B F G H A J C K B C Z 9 o 4 V M B N C M T Question 24 of 24 I e Textbook and Media