List the mistakes and suggest corrections on the statement of cash flows with computations (if any).

ABC Company Income Statement For the Year ended December 31, 2018 $ 818,000 $ 438,000 Sales Cost of goods sold Gross profit $ 380,000 $ 28,000 $ 298,000 Depreciation expense Less: Selling, general and other admin expenses $ 54,000 Income from operations $ 6,000 Loss on equipment sale $ 48,000 $ 24,000 $ 24,000 Income before income taxes Income tax expense Net Income ABC Company Comparative Statement Financial Position As at December 31 2018 2017 $ Cash 2$ 115,000 31,000 Term Deposits (60-days) 5,000 49,000 Accounts receivable 110,000 53,000 96,000 Inventory 37,000 Prepaid expenses 30,000 40,000 Land 95,600 57,600 Building Less: Acc. depreciation 200,000 200,000 (34,000) 166,000 (16,000) 160,000 184,000 Equipment Less: Acc. depreciation 116,000 (30,000) 86,000 (40,000) 120,000 Total Assets 660,600 614,600 Accounts payable 75,300 49,000 Bonds payable $ 200,000 200,000 Common stock 400,000 Retained earnings 185,300 165,600 Total Liabilities and Equity 660,600 614,600 %24 Company has recently hired an accounting trainee, Patrick Ko, who has prepared the statement of cash flow based on the financial statements above, along with the following information: All property, plant and equipment acquired during the year are paid in cash. During the year, equipment was sold for $18,000 with a cost and net book value being $44,000 and $24,000 respectively. Company has converted $200,000 of it's bonds into common stock during the year. The firm has declared and paid a cash dividend in 2018. ABC Company Statement of cash Flows Cash flows from financing activities Increase in accounts payable $ 26,300 $ 26,300 Net cash provided by financing activities Cash flows from operating activities Increase in retained earnings Adjustments to net cash provided by operating activities: 19,700 Increase in accounts receivable 14,000 Decrease in prepaid expenses Sale of equipment 10,000 $ (18,000) 6,000 Net cash provided by operating activities $ 25,700 Cash flows from investing activities $ 38,000 Purchase of land Loss on sale of equipment (6,000) $ 32,000 Net cash provided by investing activities Net increase in cash $ 84,000 $ 31,000 $ 115,000 Cash at beginning of period Cash at end of period After finishing preparing the statement of cash flows, Patrick was very happy knowing that he can reconcile the cash balance