Skysong 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 Skysong Inc., and its statement of income for the year ending December 31, 2020, follow: : December 31 2020 2019 Change Cash $42.000 $48,000 $(6,000) Cash equivalents (Note 1) 38.000 48,500 (10,500) Accounts receivable 356,000 299,000 57,000 Prepaid insurance 17.700 34,600 (16.900) Inventory 411,000 367,100 43,900 Supplies 13,000 17,000 (4.000) Long-term investment, at equity (Note 7) 421.000 412,000 9.000 Land (Note 6) 632.000 516,000 116,000 1,310,000 1,280,000 30,000 Buildings (Note 3) Accumulated depreciation-buildings (400,000) (360,000) (40,000) Equipment (Note 4) 4) 629.000 637,400 (8.400) Accumulated depreciation equipment (160,000) (135,000) (25.000) Patent 100,000 100,000 -0- Accumulated amortization (40,000) (35,000) (5,000) $3,369.700 $3,229,600 $140,100 Bank overdrafts (temporary) ) $0 $86,500 $(86,500) 167.000 158,000 9.000 Accounts payable Income tax payable 26,000 35,000 (9,000) Accrued liabilities 55,000 41,000 14.000 Dividends payable 22.000 51,000 (29.000) 420.000 460,000 (40,000) 999,000 995,000 4,000 Long-term notes payable Bonds payable Preferred shares (Note 2) 2) Common shares 486.000 380,000 106,000 743,000 676,000 67,000 Retained earnings 451.700 347,100 104,600 $3,369.700 $3,229,600 $140.100 Income Statement Revenues Sales revenue $1,005,000 Investment income 90,000 $1.095,000 Expenses and Losses Cost of goods sold 315.000 Sales commissions expense 110,000 Operating expenses (Note 5) 166,000 Salaries and wages expense 101.000 Interest expense 97,000 Loss on disposal of equipment (Note 4) 11,000 Income tax expense 96,000 896,000 Net Income $199,000 The following is additional information about Skysong'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. Skysong 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. There were no disposals of buildings during the year 2020. 3. 4. Equipment with an original cost of $46,000 and carrying amount of $14,000 was sold at a loss during the year. 5. All depreciation and amortization expense is included in operating expenses. 6. 7. During the year, Skysong 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. Prepare the statement of cash flows for the year ended December 31, 2020, for Skysong 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 parenthesis eg. (15,000L Do not leave any answer field blank. Enter for amounts.) Skysong Inc. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to net cash provided by operating activities: > > > Non-cash investing and financing activities Additional disclosures Cash and Cash Equivalents: 2020 2019 $