Question 1 (28 marks) The following statement of financial position has been submitted to you by an employee in the accounting department who has recently received notice of termination. It contains many errors in terminology, classification, and numbers. Hathaway follows IFRS. Financial Position For the Period Ended December 31, 2020 Assets Fixed Assets-Tangible Equipment. $110,000 Less: reserve for depreciation. (40,000) $ 70,000 Factory supplies 22,000 Land and buildings (land is 80,000) 400,000 Less: reserve for depreciation............... (150,000) 250,000 Plant site held for future use 90,000 $ 432,000 Current Assets Accounts receivable 175,000 Cash 80,000 Inventory 220,000 Fixed Assets-Intangible Goodwill 80,000 Notes receivable (short term) ..................... 40,000 Patents..... 26.000 146,000 Deferred Charges 60,000 Advances to salespersons (due Feb. 2021).... Prepaid rent....... TOTAL ASSETS 27,000 $1.235.000 Liabilities Current Liabilities $140,000 8,000 42,000 Accounts payable....... Allowance for doubtful accounts.. Notes payable (short term) Rent payable Long-Term Liabilities, 5% debenture bonds, due 2023 Reserve for contingencies 17.000 $ 242.000 500,000 100.000 600,000 892.000 $240,000 TOTAL LIABILITIES Equity Common shares, no par value, issued 12,000 shares Dividends paid during the year Earned surplus Other accumulated past income TOTAL LIABILITIES AND EQUITY (20,000) 23,000 100,000 $1.235,000 Note 1. The reserve for contingencies has been created by charges to earned surplus and has been established to provide a cushion for future uncertainties. Note 2. The inventory account includes only items physically present at the main plant and warehouse. Items located at the company's branch sales office, amounting to $30,000, are excluded since the company has consistently followed this procedure for many years. Required Prepare the 2020 classified Statement of Financial Position in good form. Fix all errors in classification, terminology, and numbers. (28 marks) Note Do not simply rewrite the terrible balance sheet above. Use the information in Chapter 5, and present a numerically correct balance sheet in good format that complies with IFRS classifications, terminology, and standards. Use a Word table with three number columns