CALC Exercise 23-13 Ayayal 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 $6,000 $7,100 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 34,600 18,000 Inventory 40,300 60,200 Prepaid rent 4,900 4,000 Equipment 152,400 130,600 Accumulated depreciation equipment (34,800 ) (25,200 ) Copyrights 45,700 49,800 Total assets $310,500 $296,000 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,100 $40,300 4,000 6,000 7,900 4,000 8,100 10,000 59,700 69,600 100,000 100,000 30,000 30,000 54,700 36,100 $310,500 $296,000 Policy 2000-2020 Inhn Wiley & Sons Inc All Dichte Retained earnings Total liabilities & stockholders' equity 54,700 36,100 $310,500 $296,000 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,600 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $333,450 174,300 159,150 118,800 40,350 9,600 30,750 6,150 $24,600 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 direct method. (Show amounts in the investing and financing s e.g. -15,000 or in parenthesis e.g. (15,000).) AYAYAT INC