Ayayai Inc., agreeting card company, had the following statements prepared as of December 31, 2020. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Operating expenses. Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,375 Cost of goods sold Gross profit Additional information: 1. 2. 3. 4. $11,500 1,900 175,000 164,375 119,400 44,975 9,600 $6,000 61,700 34,900 35,375 7,075 $28,300 39,700 4,900 155,500 $314,100 (35,100) $314.100 46,500 $45,600 4,000 8,000 8,000 59,700 100,000 30,000 58,800 12/31/19 $7,000 51,200 18,000 60,400 4,000 128,900 (25,000) 50,400 $294,900 AYAYAI INC. Statement of Cash Flows $39,800 6,000 4,000 9,900 68,600 100,000 30,000 36,600 $294,900 Dividends in the amount of $6,100 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Ayayai Inc., agreeting card company, had the following statements prepared as of December 31, 2020. Cash Accounts receivable Short-term debt investments (available-for-sale) Inventory Prepaid rent Equipment Accumulated depreciation-equipment Copyrights Total assets Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity Operating expenses. Operating income Interest expense Gain on sale of equipment Income before tax Income tax expense Net income AYAYAI INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 AYAYAI INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $339,375 Cost of goods sold Gross profit Additional information: 1. 2. 3. 4. $11,500 1,900 175,000 164,375 119,400 44,975 9,600 $6,000 61,700 34,900 35,375 7,075 $28,300 39,700 4,900 155,500 $314,100 (35,100) $314.100 46,500 $45,600 4,000 8,000 8,000 59,700 100,000 30,000 58,800 12/31/19 $7,000 51,200 18,000 60,400 4,000 128,900 (25,000) 50,400 $294,900 AYAYAI INC. Statement of Cash Flows $39,800 6,000 4,000 9,900 68,600 100,000 30,000 36,600 $294,900 Dividends in the amount of $6,100 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Ayayai Inc, a greeting card company, had the following statements prepared as of December 31, 2020.
Cash
Accounts receivable
Short-term debt investments (available-for-sale)
Inventory
Prepaid rent
Equipment
Accumulated depreciation-equipment.
Copyrights
Total assets
Accounts payable
Income taxes payable
Salaries and wages payable
Short-term loans payable
Long-term loans payable
Common stock, $10 par
Contributed capital, common stock
Retained earnings
Total liabilities & stockholders' equity
AYAYAI INC.
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2020 AND 2019
12/31/20
Cost of goods sold
Gross profit
Operating expenses
Operating income
Interest expense
AYAYAI INC.
INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 2020
Sales revenue
$339,375
175,000
164,375
Gain on sale of equipment
Income before tax
Income tax expense
Net income
Additional information:
1.
4.
$11,500
1,900
$314,100
119,400
44,975
$6,000
61,700
34,900
39,700
4,900
155,500
(35,100)
9,600
35,375
7,075
$28,300
46.500
$
$45.600
4,000
$314.100
8,000
8,000
59,700
100,000
30,000
58,800
12/31/19
AYAYAI INC.
Statement of Cash Flows
$7,000
51.200
18,000
60,400
4,000
128,900
(25,000)
50,400
$294,900
$39,800
6,000
4,000
9,900
68,600
Dividends in the amount of $6,100 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.
Equipment that had a cost of $19,800 and was 70 % depreciated was sold during 2020.
100,000
30,000
36,600
$294,900
Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow
with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).)
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