Prepare the operating activities section of the statement of cash flows for Ayayai using the direct...

 

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Prepare the operating activities section of the statement of cash flows for Ayayai using the direct method. Assets Cash Accounts receivable Inventory Land AYAYAI INC. Statements of Financial Position Dec. 31, 2023 $62,900 Property, plant, and equipment, net Intangible assets-patents Total Liabilities and Shareholders' Equity Accounts payable Bonds payable Common shares 86,200 104,000 160,000 310,000 $723,100 $64,600 212,000 285,000 Dec. 31, 2022 $33,000 45,400 122,000 0 233,000 20,100 $453,500 $50,500 0 271,000 Increase/Decrease $29,900 increase 40,800 increase 18.000 decrease 160,000 increase 77,000 increase 20,100 decrease 14,100 increase 212,000 increase 14,000 increase Retained earnings Total AYAYAI INC. Income Statement For the Year Ended December 31, 2023 Sales revenue $595,000 Cost of goods sold 349,000 Gross profit 246,000 Salaries and wages expense 150,000 31,000 Depreciation expense Income before income tax Income tax Net income 65,000 16,250 $48,750 161,500 $723.100 132,000 $453,500 29.500 increase Additional information: 1. 2. 3. ! .. Dividends of $19,250 were declared and paid during the year. The bonds were issued on December 31, 2023, to help finance the acquisition of the land. Specifically, $160,000 worth of the land was acquired in exchange for $106,000 of bonds, with the remainder of the bonds being issued for cash. Patents were sold at their carrying value of $20,100 on January 1, 2023. No property, plant, or equipment was sold during the year. Prepare the operating activities section of the statement of cash flows for Ayayai using the direct method. Assets Cash Accounts receivable Inventory Land AYAYAI INC. Statements of Financial Position Dec. 31, 2023 $62,900 Property, plant, and equipment, net Intangible assets-patents Total Liabilities and Shareholders' Equity Accounts payable Bonds payable Common shares 86,200 104,000 160,000 310,000 $723,100 $64,600 212,000 285,000 Dec. 31, 2022 $33,000 45,400 122,000 0 233,000 20,100 $453,500 $50,500 0 271,000 Increase/Decrease $29,900 increase 40,800 increase 18.000 decrease 160,000 increase 77,000 increase 20,100 decrease 14,100 increase 212,000 increase 14,000 increase Retained earnings Total AYAYAI INC. Income Statement For the Year Ended December 31, 2023 Sales revenue $595,000 Cost of goods sold 349,000 Gross profit 246,000 Salaries and wages expense 150,000 31,000 Depreciation expense Income before income tax Income tax Net income 65,000 16,250 $48,750 161,500 $723.100 132,000 $453,500 29.500 increase Additional information: 1. 2. 3. ! .. Dividends of $19,250 were declared and paid during the year. The bonds were issued on December 31, 2023, to help finance the acquisition of the land. Specifically, $160,000 worth of the land was acquired in exchange for $106,000 of bonds, with the remainder of the bonds being issued for cash. Patents were sold at their carrying value of $20,100 on January 1, 2023. No property, plant, or equipment was sold during the year.

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