The comparative statement of financial position of Ayayai Inc. as at June 30, 2023, and a statement of comprehensive income for the 2023 fiscal year follow: AYAYAI INC. Statement of Financial Position June 30, 2023 June 30 Assets 2023 2022 Cash $ 20,000 $ 35,000 Accounts receivable 85,000 70,000 Inventory 103,000 101,000 Prepaid expenses FV-OCI investments Equipment Accumulated depreciation-equipment Total Liabilities and Shareholders' Equity Accounts payable Income tax payable $ 393,000 $ 390,000 $ 112,000 $ 95,000 1,500 3,000 2,000 5,000 47,000 44,000 170,000 158,000 (34,000) (23,000) Income tax payable Dividends payable Long-term notes payable Common shares Retained earnings Accumulated other comprehensive income Total AYAYAI INC. Statement of Comprehensive Income For the Year Ended June 30, 2023 Net sales $310,000 Cost of goods sold 160,000 Gross profit 150,000 Operating expenses 115,000 Income from operations 35,000 Interest expense 8,000 07.000 1,500 3,000 4,000 0 80,000 118,000 30,000 22,000 154,500 144,000 11,000 8,000 $ 393,000 $ 390,000 Income before income tax 27,000 Income tax 5,000 Net income 22,000 Other comprehensive income Unrealized gain or loss-OCI 3,000 Comprehensive income $25,000 Additional information: Ayayai follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 1. 2. Operating expenses include $11,000 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Ayayai acquired $7,000 of equipment in exchange for long-term notes payable. (a) (a) Prepare the statement of cash flows for Ayayai for the year ended June 30, 2023, using the indirect method along with any necessary note disclosure. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) AYAYAI INC. Statement of Cash Flows For the Year Ended June 30, 2023 Cash Flows from Operating Activities Net Income/(Loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense Increase in Accounts Receivable Increase in Inventory 15000 2000 Increase in Accounts Payable 17000 $ 22000 Net Cash Used by Operating Activities Cash Flows from Investing Activities