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Condensed financial data of Ayayai Company for 2020 and 2019 are presented below. AYAYAI COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

Condensed financial data of Ayayai Company for 2020 and 2019 are presented below.

AYAYAI COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019

2020

2019

Cash

$1,810

$1,120

Receivables

1,790

1,330

Inventory

1,570

1,940

Plant assets

1,870

1,740

Accumulated depreciation

(1,230

)

(1,150

)

Long-term investments (held-to-maturity)

1,300

1,440

$7,110

$6,420

Accounts payable

$1,220

$910

Accrued liabilities

200

260

Bonds payable

1,370

1,550

Common stock

1,860

1,740

Retained earnings

2,460

1,960

$7,110

$6,420

AYAYAI COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue

$6,810

Cost of goods sold

4,680

Gross margin

2,130

Selling and administrative expenses

920

Income from operations

1,210

Other revenues and gains

Gain on sale of investments

80

Income before tax

1,290

Income tax expense

530

Net income

760

Cash dividends

260

Income retained in business

$500

Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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