Problem 12-08A Presented below are the financial statements of Ayayai Company. Ayayai Company Comparative Balance Sheets December 31 Assets 2022 Cash $ 105,000 Accounts receivable 60,000 Inventory 84,000 Property, plant, and equipment 180,000 Accumulated depreciation (96,000) Total $333,000 2021 $ 60,000 42,000 60,000 234,000 (72,000) $324,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 45,000 24,000 99,000 $ 57,000 21,000 51,000 54,000 150,000 $333,000 42,000 114,000 $324,000 Ayayai Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $54,000 $726,000 525,000 201,000 $726,000 525,000 Ayayai Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $54,000 Administrative expenses 18,000 Income from operations Interest expense 201,000 72,000 129,000 9,000 Income before income taxes Income tax expense 120,000 24,000 $ 96,000 Net income Additional data: 1. Depreciation expense was $52,500. 2. Dividends declared and paid were $60,000. 3. During the year equipment was sold for $25,500 cash. This equipment cost $54,000 originally and had accumulated depreciation of $28,500 at the time of sale. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and purchases are on account. Prepare a statement of cash flows for Ayayai Company using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) Ayayai Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Cash Receipts from Customers 708000 Less Cash Payments For Income Taxes 270001 For Interest 9000 x For Operating Expenses 129000 To Suppliers 5370001 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment 25,5001 Cash Flows from Financing Activities Issuance of Common Stock 12000 Payment of Dividends (60,000) Redemption of Bonds (48000) Net Cash used by Financing Activities (96000) Net Increase in Cash 45000 Cash at Beginning of Period 60000 Cash at End of Period 105000 LINK TO TEXT X Your answer is incorrect. Try again. Compute free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow Click if you would like to Show Work for this question: Open Show Work