2. Determine the free cash flow :

December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment (30,000) (23,200) 2019 2018 $37,000 $20,500 19,500 20,900 77,900 32,900 30,400 59,900 Total $130,200 $115,600 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,100 $16,300 8,300 32,900 13,700 44,400 $130,200 $115,600 7,500 27,500 18,500 48,600 Total Metlock, Inc. Income Statement For the Year Ended December 31, 2019 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,500 176,000 65,500 23,200 42,300 2,600 39,700 8,500 $31,200 Additional data: 1. Dividends declared and paid were $27,000. 2. During the year, equipment was sold for $9,700 cash. This equipment cost $18,000 originally and had a book value of $9,700 at the time of sale. All depreciation expense, $15,100, is in the operating expenses. All sales and purchases are on account. 3. 4. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) Metlock, Inc. Statement of Cash Flows Adjustments to reconcile net income to eTextbook and Media