Ayayal Inc., a greeting card company, had the following statements prepared as of December 31, 2017 AYAYAI INC Statement of Cash Flows For the Year Ended December 31, 2017 Cash Flows from Operating Activities 24.700 AYAYAT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 $5,900 $7,000 Accounts receivable 61.500 51,400 Short-term debt investments (available for sale) 35,400 17.800 Inventory 39.900 60.400 Prepaid rent 4,900 3,900 Equipment 155,300 131,000 Accumulated depreciation equipment 134.700 ) (25.2001 Copyrights 45.900 49.900 Total assets 5314,100 $296.200 Net Income Adjustments to reconcile net income to TT Cash Flows from Operating Activities Depreciation Expense 1 Amortization of Copyright 23430 4000 | Gain on Sale of Equipment | Increase in Accounts Receivable Decrease in Inventories Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock. $10 per Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46.500 4.100 8,100 8.000 60.600 100.000 30.000 36.800 $314,100 $39.600 5.900 4,100 9.900 68.600 100.000 30.000 38 100 $295, 200 Increase in Drepaid Rent Increase in Accounts Payable Increase in Salaries and Wages Payable Decrease in Income Taxes Payable 690 4 000 -300 T 78600 $335.275 173.900 161.375 121.000 40.375 Net Cash Provided by Operating Activities AYAYAT INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11 300 Gain on sale of equipment Income before tax Income tax expense Net Income 103300 Cash Flows from Investing Activities 9.500 30,875 6.175 $24.700 | Sole of Equipment Purchase of Equipment Additional informations Sale of Available for Sale Investments 1. Dividends in the amount of $5,000 ware declared and paid during 2017. 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 $19.900 and was 70% depreciated was sold during 2017, Net Cash Used by Investing Activities Cash Flows from Financing Activities Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign .g. -15,000 or in parenthesis e.g. (15,000).) Principal Payment on Short-term Loan Principal Payment on Long-term Loan DIT IN 000 O Dividend Payments Net Cash Used by Financing Activities Net Decrease in Cash Cash at Beginning of Period Cash at End of Period