The following selected account balances are taken from the financial statements of Ayayai Inc. at its calendar year end prepared using IFRS:

		2020		2019
Preferred shares classified as equity		$146,000		$146,000
Common shares: 9,000 shares in 2020, 10,000 shares in 2019		140,000		160,100
Contributed surplusreacquisition of common shares		3,200		0
Cash dividendspreferred		5,500		5,500
Stock dividendscommon		12,000		0
Retained earnings (balance after closing entries)		301,000		220,000

At December 31, 2020, the following information is available:

1.		Ayayai Inc. repurchased 2,000 common shares during 2020. The repurchased shares had a weighted average cost of $32,100.
2.		During 2020, 1,000 common shares were issued as a stock dividend.
3.		Ayayai Inc. chooses to classify dividends paid as financing activities.

(a)

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Your answer is correct.

Calculate net income for the fiscal year ending December 31, 2020.

Net income, fiscal year ending December 31, 2020

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(b)

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• Correct Answer (Used)

Provide the necessary disclosure for all of Ayayai Inc.s transactions on the statement of cash flows. Also state the section of the statement of cash flows in which each item is reported. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Ayayai Inc.s (Partial) Statement of Cash Flow For the Month Ended December 31, 2020December 31, 2020For the Year Ended December 31, 2020
Net Cash Provided by Investing ActivitiesCash at End of PeriodCash Flows from Operating ActivitiesCash Flows from Investing ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesCash Flows from Financing ActivitiesNet Cash Provided by Operating ActivitiesNet Decrease in CashNet Increase in CashNet Cash Used by Operating ActivitiesNet Cash Provided by Financing ActivitiesCash at Beginning of Period
Payments on Repurchase of Preferred SharesPayments on Repurchase of Common SharesPreferred Dividends ReceivedCommon Shares Dividends PaidPreferred Dividends Paid		$
Common Shares Dividends PaidPreferred Dividends ReceivedPayments on Repurchase of Common SharesPreferred Dividends PaidPayments on Repurchase of Preferred Shares

(d)

Assume that the preferred shares are term preferred shares classified as debt. Calculate net income for the fiscal year ending December 31, 2020.

Net income, fiscal year ending December 31, 2020

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