Digiread Technologies Ltd. (DTL) is a privately held distributor of e-readers and tablets. The Calgary-based company is well established and is currently managed by its founder, Erin Jacobs. The companys financial statements are presented below, together with some additional information.

Please explain why the Ending cash is wrong and how to calculate it. As well as the Cash paid for interest and cash paid for income tax.

Digiread Technologies Ltd. (DTL) is a privately held distributor of e-readers and tablets. The Calgary-based company is well established and is currently managed by its founder, Erin Jacobs. The company's financial statements are presented below, together with some additional information. DIGIREAD TECHNOLOGIES LTD. Statement of Income For the Year Ended December 31, 2020 Sales revenue $47,470,000 Cost of goods sold 32,336,000 Gross profit 15,134,000 Wages expense 3,760,000 Depreciation expense 1,128,000 Interest expense 1,786,000 Income tax expense 1,504,000 Gain on sale of equipment (564,000) Net income $7,520,000 DIGIREAD TECHNOLOGIES LTD. Statement of Financial Position As at December 31 2020 2019 Assets Current assets: $14,570,000 10,810,000 15,886,000 41,266,000 37,036,000 (6,204,000) $7,990,000 14,570,000 17,860,000 40,420,000 28,200,000 (6,016,000) $62,604,000 $72,098,000 Cash Accounts receivable (net) Inventory Total current assets Equipment Accumulated depreciation, equipment Total Assets Liabilities and shareholders' equity Current liabilities: Accounts payable Wages payable Total current liabilities Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity $11,186,000 1,128,000 $6,580,000 940,000 12,314,000 19,740,000 13,160,000 26,884,000 $72,098,000 7,520,000 24,440,000 8,460,000 22,184,000 $62,604.000 1. DIGIREAD TECHNOLOGIES LTD. Other Selected Financial Information for the Year Ended December 31, 2020 Total sales in 2020 were consistent with the prior year's, and the company's dividend policy has remained consistent for the past five years. During 2020, DTL sold a piece of equipment for $1,974,000. The equipment had originally cost $2,350,000 and had a net carrying amount of $1,410,000 at the time of sale. On August 1, 2020, DTL's board of directors approved the retirement of bonds with a carrying amount $4,700,000 through the issuance of common shares. 2. 3. DIGIREAD TECHNOLOGIES LTD. Statement of Cash Flows, Indirect Method For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 7,520,000 Depreciation Expense 1,128,000 Gain on Sale of Equipment (564,000) Decrease in Accounts Receivable 3,760,000 Decrease in Inventories 1,974,000 Increase in Accounts Payable 4,606,000 Increase in Wages Payable 188,000 Net Cash Provided by Operating Activities $ 18,612,000 Cash Flows from Investing Activities Proceeds from the sale of Equipment V 1,974,000 Purchase of Equipment (11,186,000) Net Cash Used for Investing Activities (9,212,000) Cash Flows from Financing Activities Dividend Paid (2,820.000) Net Cash Used for Financing Activities (2,820,000) Net Change in Cash $ 6,580,000 Ending Cash $ 6,580,000 Opening Cash 7,990,000 Net Change in Cash 14,570,000 Supplemental Cash Flow information: Cash paid for interest $ 1,786,000 Cash paid for income tax $ 1,504,000