Marin 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 draft financial statements over to you, the newest member of the accounting staff, along with extracts from the notes to the financial statements. MARIN INC. Consolidated Statement of Financial Position April 30, 2020, and 2019 (in $000s) Assets 2020 2019 Cash and 60-day treasury bills $3263 $3,736 Accounts receivable 23.747 18,407 Inventory 26.083 22573 Income tax receivable 145 Income tax receivable 145 0 Prepaid expenses 1,394 1,605 54,632 45,321 Investments (Note 1) 5,957 6,965 Property, plant, and equipment (Note 2) 37,336 45,707 Deferred tax asset 4,873 2,268 Intangible assets-franchises (Note 3) 4,391 1,911 Goodwill 0 12,751 $107.189 $114,923 Liabilities Current Bank overdraft (temporary) $7,109 $ 6,336 3,243 4,712 Accounts payable and accrued liabilities (Note 4) Current portion of long-term debt 1,800 1.200 12,152 12,248 14,900 14,500 Long-term debt (Note 5) Shareholders' Equity 78.257 62.965 Share capital (Note 6) Retained earnings 1,880 25.2.10 80,137 88.175 $107.189 $114.923 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 1,310 446 Interest and other 91,131 69,266 Expenses W 39.700 10 Cost of goods sold 53,000 10.415 10,982 General and administrative 26,624 24,500 Salaries and wages expense 10.220 11.709 Depreciation and amortization 12.751 0 Loss on impairment (goodwill) 1,280 1,514 Interest 397 O Loss on disposal of capital assets Loss on disposal of capital assets 397 0 114,687 88,405 (23,556) (19,139) Loss before equity loss and income tax Investment income (loss) (Note 1) (2.524) 106 Loss before income tax (26,080) (19,033) Income tax benefit 2,750 5,161 Net loss (23,330) (13,872 h; Retained earnings, beginning of year 25.210 39,082 Retained earnings, end of year 1,880 25,210 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 soos: 2020 2019 $6,965 $6,859 Compuco Ltd. (fair value 2020, 54.3 million) Associate's shares, opening balance at equity Equity income (loss) Associate's shares, ending balance at equity Other investments, at amortized cost (2.524) 106 4,441 6,965 1.516 0 $5.957 $6.965 Note 2. Property, Plant, and Equipment Additions to property, plant, and equipment for the current year amounted to $2,291,000. 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 $000s) 7 2020 2019 Accounts payable-suppliers $3,102 $4,562 Salaries and wages payable 141 150 $3,243 $4.712 Note 5. Long-Term Debt (in 5000s) 2020 2019 $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 3.200 4.200 1600 15.700 Current maturities (1.800 11.2001 $14.900 $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. Marin Inc issued 3.8 million shares with special warrants. Net proceeds from issuing the 3.8 million shares amounted to $14,393,000. Net proceeds from issuing the 3.8 million warrants amounted to $899.000. Assume that Marin 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 astatement 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.) Marin Inc. Consolidated Statement of Cash Flows For the Year Ended April 30.2020 Cash Flows from Operating Activities Cash Received from Customers $ Cash Received for Interest 1310 Payments for Goods and Services Cash Paid for Other Operating Expenses Interest Paid > Income Taxes Paid Proceeds from Bankterm Loans Proceedstrom Sale at Warrants Net Cash Provided by Financing Activities Proceeds from Sale of Warrants Net Cash Provided by Financing Activities . Net Decrease in Cash Cash and Cash Equivalents, May 1, 2019 Cash and Cash Event April 30, 2020 $