Please correct the parts that are incorrect in red.

Metlock Inc. follows IFRS and has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Comparative SFP accounts of Metlock Inc., and its statement of income for the year ending December 31, 2020, follow: December 31 2020 2019 Cash $46,000 $57.000 Change $(11,000) (7,800) ( 57,000 Cash equivalents (Note 1) 32,000 39,800 Accounts receivable 355,000 298,000 Prepaid insurance 15.700 32,500 (16,800) Inventory 412,000 373.700 38,300 Supplies 13,000 17.000 (4,000) Long-term investment, at equity (Note 7) , (7) 418,000 406,500 11,500 Land (Note 6) 635,000 520,000 115.000 Buildings (Note 3) 1,310,000 1,280,000 30,000 Accumulated depreciation-buildings (400,000) (40,000) (360,000) 635,000 Equipment (Note 4) 628,000 (7,000) Accumulated depreciation equipment (160,000) (135,000 (25,000) Patent 100,000 100.000 -0- Accumulated amortization (40,000) (35,000) (5,000 $3,364,700 $3.229.500 $135,200 $0 $87,800 $(87,800) Bank overdrafts (temporary) () Accounts payable 169,000 158,000 11,000 Income tax payable 26,000 35.000 (9.000) Accrued liabilities 56.000 43,000 13,000 Dividends payable 18,000 46.000 (28,000) Long-term notes payable 420,000 460.000 ( (40,000) Bonds payable 999,000 995.000 4,000 Preferred shares (Note 2) 486.000 380.000 106,000 Common shares 752,000 687.000 65,000 Retained earnings 438,700 101,000 337,700 $3.229,500 $3,364.700 $135,200 Income Statement Revenues Sales revenue $998,000 Investment income 90,000 $1,088,000 Expenses and Losses Cost of goods sold 316,000 Sales commissions expense 107.000 Operating expenses (Note 5) 166,000 Salaries and wages expense 105,000 93,000 Interest expense Loss on disposal of equipment (Note 4) 4 11,000 Income tax expense 96,000 894,000 Net Income $194,000 The following is additional information about Metlock's transactions during the year ended December 31, 2020. 1. The cash equivalents are typically term deposits that are very liquid and mature on average in 60 days. The bank overdrafts are temporary and reverse within a few days. Metlock has opted to show these as cash and cash equivalents on its statement of cash flows. 2. During the year, preferred shares with a carrying amount of $18,000 were converted to common shares. 3. There were no disposals of buildings during the year 2020. 4. 5. 6. Equipment with an original cost of $46,000 and carrying amount of $14,000 was sold at a loss during the year. All depreciation and amortization expense is included in operating expenses. During the year, Metlock obtained land with a fair value of $100,000 in exchange for its preferred shares. Investment income includes the equity earnings of $62,000 from a long-term investment accounted for using the equity method and from interest revenue on the short-term investments referred to in note 1 above. 7. Your answer is partially correct. Prepare the statement of cash flows for the year ended December 31, 2020, for Metlock Inc. using the indirect method. Prepare any additional disclosure notes that are required, including a table that shows the details of the cash and cash equivalents accounts at the end of each period. (Show amounts that decrease cash flow with either a-signeg -15.000 or in parenthesiseg (15,000). Do not leave any answer field blank. Enter for amounts.) Metlock Inc. Statement of Cash Flows (Indirect Method) For the year ended December 31, 2020 Increase in Cash and Cash Equivalents Gain on sale of Equipment 190,0% Gainon Sale of Eulament 49,0% Adjustments to reconcile net income to net cash provided by operating activities: Loss on Sale of Equipment V 11,000 Loss on Sale of Equipment V 40,000 Loss on Sale of Equipment V 57,000 Amortization Expense - Patent V 5,000 Amortization of Bond Discount V 4,000 Equity in Earnings of Associate -62,000 Increase in Accounts Receivable V -63,000 Decrease in Preoald Insurance V 18,300 Increase in Inventory -42,400 Decrease in Supplies V 4,000 Increase in Accounts Payable 8,000 Decrease in Income Tax Pavable -9,000 Decrease in Accrued Liabilities V 10,000 -19,16 Net Cash Used by Operating Activities 219,90 Cash Flows from Investing Activities Purchase of Land VI -26,000 Purchase of Building -30,000 Purchase of Equipment V -37,900 Proceeds from Sale of Equipment V 3,000 Net Cash Used by Investing Activities -90% Cash Flows from Financing Activities Proceeds from Issuance of Common Shares 24,000 Repayment of Lone term Notes Principal 54,000 Repayment of Long-term Notes Principal - 40,000 Dividends Paid -93000 Net Cash Used by investing Activities -55,0% Increase in Cash and Cash Equivalents 74,0% Cashand Cash Equivalents Balance Dec 31, 2019 8,0% Cashand Cash Enuivalents Balance Dec.31. 2020 82.0% Non-cash investing and financing activities Purchase of Land V 100,0% Additional disclosures Interest Pald $ 93,06 Decrease in income Tax Payable 105,0 Cash and Cash Equivalents: 2020 2019 Cash 46,000 52.00C Cash Equivalents V 36,000 40 50C Temporary Bank Overdrafts V -90.30C 82,000 8.DOC