Question

The current sections of Ayayai Corp.’s balance sheets at December 31, 2016 and 2017, are presented here. Ayayai Corp.’s net income for 2017 was $168,453. Depreciation expense was $29,727.

		2017		2016
Current assets
Cash		$115,605		$ 108,999
Accounts receivable		88,080		97,989
Inventory		184,968		189,372
Prepaid expenses		29,727		24,222
Total current assets		$418,380		$420,582
Current liabilities
Accrued expenses payable		$ 16,515		$ 5,505
Accounts payable		93,585		101,292
Total current liabilities		$110,100		$ 106,797

Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, 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 Corp. Partial Statement of Cash Flows choose the accounting period                                                          December 31, 2017For the Year Ended December 31, 2017For the Quarter Ended December 31, 2017
select an opening section name                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income		$enter a dollar amount
Adjustments to reconcile net income to
select an opening subsection name                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	$enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
select an item                                                          Decrease in Accounts PayableDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableDecrease in InventoryDecrease in Prepaid ExpensesDepreciation ExpenseIncrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Accrued Expenses PayableIncrease in InventoryIncrease in Prepaid ExpensesNet Income	enter a dollar amount
		enter a total amount for this subsection
select a closing section name                                                          Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash used by Financing ActivitiesNet Cash used by Investing ActivitiesNet Cash used by Operating ActivitiesNet Decrease in CashNet Increase in Cash		$enter a total amount for this section

Answer 1

Solution

Ayayai Corp.
Partial Statement of Cash Flows
For the year ended December 31 , 2017
Cash flows from operating activities:
Net Income		$    168,453.00
Adjustments to reconcile net income to
net cash flow from operating activities:
Depreciation expense	$     29,727.00
Changes in current operating assets and liabilities:
Decrease in accounts receivable	$       9,909.00
Decrease in Inventory	$       4,404.00
Increase in prepaid expense	$      (5,505.00)
Increase in accrues expense payable	$        11,010.00
Decrease in accounts payable	$      (7,707.00)
		$        41,838.00
Net cash flow from operating activities		$    210,291.00