ueenstar Co. follows International Financial Reporting Standards. Queenstar classifies payments of interest as "operating" activities, and payments of dividends as "financing" activities. Queenstar Co.'s statement of financial position and their statement of income (year ending December 31, 2020) are provided below: December 31 2020 2019 Change Cash $47,000 $53,000 $(6,000) Cash equivalents (Note 1) 31,000 36,200 (5,200 ) Accounts receivable 352,000 291,000 61,000 Prepaid insurance 16,600 36,500 (19,900 ) Inventory 416,000 377,700 38,300 Supplies 13,000 17,000 (4,000 ) Long-term investment, at equity (Note 7) 420,000 408,300 11,700 Land (Note 6) 634,000 512,000 122,000 Buildings (Note 3) 1,310,000 1,280,000 30,000 Accumulated depreciation-buildings (400,000 ) (360,000 ) (40,000 ) Equipment (Note 4) 635,000 642,600 (7,600 ) Accumulated depreciation-equipment (160,000 ) (135,000 ) (25,000 ) Patent 100,000 100,000 -0- Accumulated amortization (40,000 ) (35,000 ) (5,000 ) $3,374,600 $3,224,300 $150,300 Bank overdrafts (temporary) $0 $80,200 $(80,200 ) Accounts payable 164,000 154,000 10,000 Income tax payable 26,000 35,000 (9,000 ) Accrued liabilities 59,000 47,000 12,000 Dividends payable 21,000 50,000 (29,000 ) 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 747,000 675,000 72,000 Retained earnings 452,600 348,100 104,500 $3,374,600 $3,224,300 $150,300 Income Statement Revenues Sales revenue Investment income $1,007,000 90,000 $1,097,000 Expenses and Losses Cost of goods sold 315,000 Sales commissions expense 111,000 Operating expenses (Note 5) 166,000 Salaries and wages expense 108,000 Interest expense 93,000 Loss on disposal of equipment (Note 4) 11,000 Income tax expense 96,000 900,000 Net Income $197,000 Additional information about Queenstar's transactions during the year ended December 31, 2020, is provided below: 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. Queenstar has shows 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) 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 expenses are included in operating expenses. 6) During the year, Queenstar acquired land with a fair value of $100,000 in exchange for preferred shares. 7) 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. Required: Prepare the statement of cash flows for the year ended December 31, 2020, for Queenstar Co. using the indirect method. Prepare any additional disclosure notes that are required