Exercise 23-14

Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2017.

Additional information:

1.		Dividends in the amount of $5,900 were 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 $20,000 and was 70% depreciated was sold during 2017.

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).)

COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets $6,000 $6,900 50,800 18,100 60,400 4,000 152,400 131,000 62,400 35,100 40,100 5,100 (34,700) (24,800 ) 45,500 49,900 $311,900 $296,300 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 $45,900 $39,900 6,000 4,000 10,000 68,700 100,000 100,000 30,000 37,700 $311,900 $296,300 4,000 8,100 8,100 59,500 30,000 56,300