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DALR NLA Exercise 5-16 a-b The statement of income of Ayayai Transport Inc. for the year ended December 31, 2020, reported the following condensed information: AYAYAI TRANSPORT INC. Income Statement Year Ended December 31, 2020 Service revenue $605,000 Operating expenses 460,000 Income from operations 145,000 Other revenues and expenses Gain on disposal of equipment $45,000 Interest expense 15,000 30,000 Income before income tax 175,000 Income tax 35,000 Net Income $140,000 Ayayai's statement of financial position included the following comparative data at December 31: 2020 2019 Accounts receivable $60,500 $73,500 Prepaid insurance 21,000 11,500 Accounts payable 43,500 79,500 Interest payable 7,000 2,750 Income tax payable 18,000 9,500 Unearned revenue 26,000 45,000 Additional information: Operating expenses include $220,000 in depreciation expense. The company follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, 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 TRANSPORT INC. Partial Statement of Cash Flows Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities: PRINTER VERSION Net cash operating activities $ LINK TO TEXT LINK TO TEXT Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the direct method. (Show amounts that decrease cash flow wi - sign e.g. -15,000 or in parenthesis e.g. (15,000).) AYAYAI TRANSPORT INC. Partial Statement of Cash Flows Cash flows from operating activities Cash payments $ Net cash operating activities

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