Question

Condensed financial data of Ayayai Company for 2017 and 2016 are presented below AYAYAI COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 Cash Receivables Inventory Plant assets Accumulated depreciation 2017 $1,780 1.740 1,610 1,930 (1.210) 1,290 $7 140 2016 $1,130 1,290 1,870 1,710 (1.150) 1440 $6,290 Accounts payable Accrued liabilities Bonds payable Common stock Retained eanings $1,180 190 1410 1,920 2,440 $900 240 1,590 1,690 1,870 $7.140 , 620 AYAYAI COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross margin Selling and administrative expenses Income from operations Other revenues and gains $6,880 4,650 2,230 940 1,290 Gain on sale of investments Income before tax Income tax expense Net income Cash dividends Income retained in business 80 1370 540 830 260 $570 Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Answer 1

	Statement of Cash Flows
	For the Year Ended December 31, 2017
Cash Flows from Operating Activities:
Net income		830
Adjustments to reconcile net income to
Net cash provided by operating activities
Depreciation expense	60
Gain on Sale of investments	-80
Increase in receivables	-450
Decrease in inventory	260
Increase in accounts payable	280
Decrease in accrued liabilities	-50
		20
Net cash provided by operating activities		850
Cash Flows from Investing Activities:
Purchase of Plant Assets	-150
Sale of Held-to-Maturity Investments	230
Net Cash Provided by Investing Activities		80
Cash Flows from Financing Activities
Payment of Cash Dividends	-260
Redemption of Bonds Payable	-180
Issuance of Capital Stock	160
Net Cash Used by Financing Activities		-280
Net Increase in Cash		650
Cash at Beginning of Period		1130
Cash at End of Period		1780
Noncash Investing and Financing Activities
Issuance of Common Stock for Plant Assets		70