Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020.AYAYAI INC.COMPARATIVE BALANCE SHEETAS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19Cash $6,000 $7,100 Accounts receivable 62,000 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 40,400 59,600 Prepaid rent 5,100 3,900 Equipment 153,300 131,200 Accumulated depreciation—equipment (35,300) (25,100)Copyrights 46,000 50,000 Total assets $312,800 $295,300 Accounts payable $46,200 $39,700 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 59,900 68,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 56,900 37,100 Total liabilities & stockholders’ equity $312,800 $295,300 AYAYAI INC.INCOME STATEMENTFOR THE YEAR ENDING DECEMBER 31, 2020Sales revenue $334,625Cost of goods sold 174,300Gross profit 160,325Operating expenses 118,900Operating income 41,425Interest expense $11,300 Gain on sale of equipment 2,000 9,300Income before tax 32,125Income tax expense 6,425Net income $25,700Additional information:1. Dividends in the amount of $5,900 were declared and paid during 2020.2. Depreciation expense and amortization expense are included in operating expenses.3. No unrealized gains or losses have occurred on the investments during the year.4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020.Prepare a statement of cash flows 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).)AYAYAI INC.Statement of Cash Flowschoose the accounting period select an opening name for section one select an item $enter a dollar amount Adjustments to reconcile net income to select a subsection name select an item $enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount enter a subtotal of the adjustmentsselect a closing name for section one enter a total amount for section one select an opening name for section two select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section two enter a total amount for section two select an opening name for section three select an item enter a dollar amount select an item enter a dollar amount select an item enter a dollar amount select a closing name for section three enter a total amount for section three select an item enter a total amount for three sectionsselect an item enter a dollar amountselect a closing name for this statement $enter a total of the two previous amounts

The cash flow statement is prepared to record cash flow from various activities during the period…

Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020. AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,000 $7,100 Accounts receivable 62,000 50,700 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 40,400 59,600 Prepaid rent 5,100 3,900 Equipment 153,300 131,200 Accumulated depreciation—equipment (35,300 ) (25,100 ) Copyrights 46,000 50,000 Total assets $312,800 $295,300 Accounts payable $46,200 $39,700 Income taxes payable 3,900 6,100 Salaries and wages payable 7,900 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 59,900 68,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 56,900 37,100 Total liabilities & stockholders’ equity $312,800 $295,300 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $334,625 Cost of goods sold 174,300 Gross profit 160,325 Operating expenses 118,900 Operating income 41,425 Interest expense $11,300 Gain on sale of equipment 2,000 9,300 Income before tax 32,125 Income tax expense 6,425 Net income $25,700 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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Ayayai Inc., a greeting card company, had the following statements prepared as of December 31, 2020.

AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019
	12/31/20		12/31/19
Cash	$6,000			$7,100
Accounts receivable	62,000			50,700
Short-term debt investments (available-for-sale)	35,300			17,900
Inventory	40,400			59,600
Prepaid rent	5,100			3,900
Equipment	153,300			131,200
Accumulated depreciation—equipment	(35,300	)		(25,100	)
Copyrights	46,000			50,000
Total assets	$312,800			$295,300

Accounts payable	$46,200			$39,700
Income taxes payable	3,900			6,100
Salaries and wages payable	7,900			4,000
Short-term loans payable	8,000			10,100
Long-term loans payable	59,900			68,300
Common stock, $10 par	100,000			100,000
Contributed capital, common stock	30,000			30,000
Retained earnings	56,900			37,100
Total liabilities & stockholders’ equity	$312,800			$295,300

AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue		$334,625
Cost of goods sold		174,300
Gross profit		160,325
Operating expenses		118,900
Operating income		41,425
Interest expense	$11,300
Gain on sale of equipment	2,000	9,300
Income before tax		32,125
Income tax expense		6,425
Net income		$25,700

Additional information:

1.		Dividends in the amount of $5,900 were declared and paid during 2020.
2.		Depreciation expense and amortization expense are included in operating expenses.
3.		No unrealized gains or losses have occurred on the investments during the year.
4.		Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020.

Prepare a statement of cash flows 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).)

AYAYAI INC. Statement of Cash Flows choose the accounting period
select an opening name for section one
select an item		$enter a dollar amount
Adjustments to reconcile net income to
select a subsection name
select an item	$enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
		enter a subtotal of the adjustments
select a closing name for section one		enter a total amount for section one

select an opening name for section two
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section two		enter a total amount for section two

select an opening name for section three
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section three		enter a total amount for section three

select an item		enter a total amount for three sections
select an item		enter a dollar amount
select a closing name for this statement		$enter a total of the two previous amounts

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