Question
Shown below are comparative statements of financial position for Ayayai Corporation. AYAYAI CORPORATION Statement of Financial Position December 31 Assets 2025 2024 Cash $24,800
Shown below are comparative statements of financial position for Ayayai Corporation. AYAYAI CORPORATION Statement of Financial Position December 31 Assets 2025 2024 Cash $24,800 $17,600 Term deposits 29,600 0 Accounts receivable 68,000 60,800 Inventory 136,000 151,200 Land 64,000 80,000 Equipment 208,000 160,000 Accumulated depreciation - equipment (52,800) (25,600) $477,600 $444,000 Liabilities and Shareholders' Equity Accounts payable $31,200 $37,600 Bonds payable 120,000 160,000 Common shares 172,800 139,200 Retained earnings 153,600 107,200 $477,600 $444,000 Additional information: Net income for 2025 was $74,400. There were no gains or losses reported on the statement of income. 1. 2. Cash dividends of $28,000 were declared and paid. 3. Bonds payable amounting to $40,000 were redeemed for cash $40,000. The bonds were originally issued at face value (no premium or discount). 4. Common shares were issued for $33,600 cash. 5. No land was purchased during 2025. 6. No equipment was disposed of during 2025. Prepare a statement of cash flows for 2025 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).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started