Question

The comparative balance sheets of Ayayai Corporation at the beginning and end of the year 2020 appear below. AYAYAI CORPORATION BALANCE SHEETS Dec. 31, 2020 Jan. 1, 2020 Inc./Dec. Assets Cash $21,380 $14,480 $6,900 Inc. Accounts receivable 107,380 89,480 17,900 Inc. Equipment 40,380 23,480 16,900 Inc. Less: Accumulated Depreciation-Equipment (17,000 ) (11,000 ) 6,000 Inc. Total $152,140 $116,440 Liabilities and Stockholders’ Equity Accounts payable $21,380 $16,480 4,900 Inc. Common stock 101,380 81,480 19,900 Inc. Retained earnings 29,380 18,480 10,900 Inc. Total $152,140 $116,440 Net income of $45,380 was reported, and dividends of $34,480 were paid in 2020. New equipment was purchased and none was sold. (a) Partially correct answer iconYour answer is partially correct. Prepare a statement of cash flows for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Answer 1

Statement of Cash Flows
For the Year Ended December 31, 2020
Cash Flows from Operating Activities:
Net income		45380
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	6000
Increase in Accounts Receivable	-17900
Increase in accounts payable	4900
		-7000
Net cash provided by operating activities		38380
Cash Flows from Investing Activities:
Purchase of Equipment		-16900
Cash Flows from Financing Activities
Payment of Cash Dividends	-34480
Issuance of Stock	19900
Net Cash Used by Financing Activities		-14580
Net Increase in Cash		6900
Cash at Beginning of Period		14480
Cash at End of Period		21380