Kingbird Inc's CFO has just left the office of the company president after a meeting about the draft SFP at April 30, 2020, and income statement for the year then ended. (Both are reproduced below.) Our liquidity position looks healthy, the president had remarked. "Look at the current and acid-test ratios, and the amount of working capital we have. And between the goodwill write off and depreciation, we have almost $23 million of non-cash expenses. I don't understand why you've been complaining about our cash situation The CFO turns the dratt financial statements over to you, the newest member of the accounting staft, along with extracts from the To the financial statements. KINGBIRD INC. Consolidated Statement of Financial Position April 30, 2020, and 2019 (In $000s) Assets 2020 Cash and 60-day treasury bills $3.269 Accounts receivable 23,741 Inventory 26,082 Income tax receivable 145 Prepaid expenses 1.410 54 647 Its Note 2019 $3,746 18.407 21.570 0 1.620 45,343 54,647 45.343 6.967 5,974 37.331 45.703 Investments (Note 1) Property, plant, and equipment (Note 2) Deferred tax asset Intangible assets-franchises (Note 3) Goodwill 4,874 2.257 1.911 4,391 12.747 $107.217 $114,928 Liabilities Current Bank overdraft (temporary Accounts payable and accrued liabilities (Note 4) Current portion of long-term debt $ 6,342 $7.415 3,242 1.800 12452 1,200 12.253 14.500 Long-term debt (Note 5 14200 Shareholders' Equity Share capital (Note 6) Retained eamings 179.257 1603 62.965 23210 Shareholders' Equity Share capital (Note 6) Retained earnings 62.965 25.210 78.257 1,603 79.860 $107 217 88,175 $114,928 Consolidated Statement of Income and retained Earnings Year Ended April 30, 2020, and 2019 (in $000s) Revenue 2020 2019 Sales revenue $89.821 $68,820 Interest and other 1.3101 4656 91-131 69.266 Expenses Cost of goods sold 53.300 dloos General and administrative 10.415 10.98 Salaries and wages expense 26.524 24.500 Depreciation and amortization 10/200 11709 Expenses Cost of goods sold General and administrative Salaries and wages expense Depreciation and amortization Loss on impairment (goodwill) terest Loss on disposal of capital assets 40.003 10.982 24,500 11.709 0 1,521 0 53,300 10,415 26,624 10,220 12.747 1,286 399 114.991 (23.860 (2.509) (26.369) 2.762 (23.607 25,210 1,603 Loss before equity loss and income tax Investment income (loss) (Note 1) Loss before income tax Income tax benefit Netloss Retained earnings. beginning of year Retained earnings. end of year 88.715 (19,449) 91 (19.358) 5.161 (14.197 39,407 25.210 Draft Notes to the Financial Statements Draft Notes to the Financial Statements For the Year Ended April 30, 2020 Note 1. Investments The company's investments at April 30 are as follows (in 5000s): 2020 2019 Compuco Ltd. (fair value 2020, 54.3 million) Associate's shares.opening balance at equity Equity income foss) Associate's shares. ending balance at equity Other investments, at amortized cost $6.967 2.509 4.458 1.516 55.974 $6,876 91 6.967 0 $6.967 Note 2. Property, Piant and Equipment Additions to property, plant and equipment for the current year amounted to 52.289.000. Proceeds from the disposal of property. plant, and equipment amounted to $250.000, Note 2. Property, Plant, and Equipment Additions to property, plant, and equipment for the current year amounted to $2.289,000. Proceeds from the disposal of property plant, and equipment amounted to $250,000. Note 3. Intangible Assets-Franchises Franchise fees are amortized over the term of 20 years using the straight line method. Note 4. Accounts Payable and Accrued Liabilities (in 5000) 2020 53,101 Accounts payable--suppliers Salaries and wages payable 2019 54.561 150 54 711 $3.242 Note 5. Long Term Debt (in $000s) 2020 2019 Note 5. Long-Term Debt (in S000s) 2019 2020 $12,500 $12.500 Debentures Bank term loans, due April 30, 2021. principal repayable at $150,000 a month (2019, at $100.000 a month) Current maturities 4.200 16,700 (1.800 $14.900 3.200 15,700 (1.200) $14.500 Debentures bear interest at 9% per annum and are due in 2022. Bank term loans bear interest at 8% and the bank advanced $2.2 million during the year. Note 6. Share Capital On September 14, 2019. Kingbird Inc. issued 3.8 million shares with special warrants Net proceeds from issuing the 3.8 million shares amounted to $14393.000. Net proceeds from issuing the 3.8 million warrants amounted to $899.000 Assume that Kingbird inc. follows IFRS and has adopted the policy of classifying interest paid and dividends received as operating activities, and dividends paid as financing activities. Prepare a statement of cash flows for the year ended April 30, 2020, on a non comparative basis from the information provided. The CFO wants to use the direct method to report the company's operating cash flows this year. Include all required disclosures. (Show amounts that decrease cash flow with either a - signes -15,000 or in parenthesis eg. (15,000). Do not leave any answer field blank. Enter "O" for amounts. Enter amounts in thousands) Kingbird Inc. Consolidated Statement of Cash Flows For the Year Ended Abril 30 2020 Cash Flows from Operating Activities Cash Received from Customers Cash Received for Interest Payments to don Behaits Employees interest Pid Icone Tess Pad Payments to and on behalf of Employees Interest Paid