Question 11 The comparative statement of financial position of Ayayal Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: AYAYAI INC. Statement of Financial Position June 30, 2020 June 30 Assets Cash 2020 2019 $ 20,000 $ 38,000 85,200 Accounts receivable Inventory Prepaid expenses FV-OCI investments 75,000 103,400 101,600 2,900 5,000 48,000 45,400 170,000 159,000 (34,200) (24,200) $395,300 $399,800 Equipment Accumulated depreciation-equipment Total Liabilities and Shareholders' Equity Accounts payable Income tax payable Dividends payable Long-term notes payable Common shares Retained earnings Accumulated other comprehensive income Total $115,000 $104,000 1,600 5,500 83,200 30,600 148,200 139,300 11,200 $395,300 $399,800 3,700 120,500 23,700 8,600 AYAYAI INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $325,000 170,000 155,000 Cost of goods sold Gross profit Operating expenses Income from operations 121,000 34,000 Interest expense 8,600 Income before income tax 25,400 5,700 Income tax Net income 19,700 Other comprehensive income Unrealized gain or loss-OCI 2,600 Comprehensive income $ 22,300 Additional information: Additional information: 1. Ayayai follows IFRS. Assume that interest is treated as an Operating expenses include $10,000 in depreciation expense. There were no disposals of equipment during the year Common shares were issued for cash. operating activity for purposes of the statement of cash flows. 2. 3. 4. 5. During the year, Ayayai acquired $7,300 of equipment in exchange for long-term notes payable. (b) Your answer is partially corect. Try again. Prepare the operating activities section of the statement of cash flows for Ayayal using the direct method. (Show amounts that decrease cash flow with elther a-sign e.g. -15,000 or in parenthesls e.g. (15,000).) AYAYAI INC. Statement of Cash Flows For the Year Ended June 30, 2020 Cash Flows from Operating Activities Cash Received from Customers Cash Paid for Operating Expenses 12100 Cash Paid to Suppliers 1800 Taxes Paid 2100 Interest Paid 1800 18500 Net Cash Provided by Operating Activities 28700 LINK TO TEXT Attempts: 2 of 3 used SAVE FOR LATER SUBHIT