A comparative balance sheet for Alpha" Company, containing data in , for the most recent years is as follows: Comparative Balance Sheet Liabilities & Stockholders' 20X0 Equity Stockholders' equity: 420,000 Common stock 20X1 20X1 20X0 510,000 610,000 520,000 (116,000) (68,000) Retained earnings 184,000 190,000 Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Long-term investments Total fixed assets 394,000 794,000 710,000 110,000 504,000 134,000 140,000 134,000 140,000 90,000 Current assets: Cash and cash equivalents Marketable securities Accounts receivables Inventory Total current assets 50,000 310,000 150,000 600,000 352,000 Total stockholders' equity 170,000 Long - term liabilities: 522,000 Long-term debt Total long-term liabilities Current liabilities: 52,000 50,000 Accounts payable 260,000 Notes Payable 122,000 Accrued Expenses 484,000 Taxes Payable Total current liabilities Total liabilities 1,006,000 Total liabilities & stockholders' equity 105,000 20,000 27,000 24,000 176,000 90,000 35,000 11,000 20,000 156,000 Total assets 1,104,000 310,000 1,104,000 296,000 1,006,000 The company reported for the current year 20X1 the following income statement: Income Statement 20X1 Sales Cost of goods Gross margin Selling expenses General and administrative expenses Net operating income Gain on sales of long-term Investments Income before taxes Income taxes Net income 1,900,000 (1,200,000) 700,000 (250,000) (250,000) 200,000 24,000 224,000 (90,000) 134,000 Additional Information: 1. Alpha Company declared and paid cash dividends during the year. 2. Alpha Company issued common stock during the year. The proceeds from the issue of common stock have been used to purchase equipment. 3. Alpha Company sold long-term investments that cost 60,000 during the year. Required: 1. Prepare the cash flow statement for Alpha Company using the indirect method (20%). 2. Which are the major similarities and the major differences on the preparation of the cash flow statement under between U.S. GAAP and IFRS. Explain briefly (max 250 words) (10%). 3. Do free cash flows exhibit different features across various stages of a firm's development, and why? Explain briefly (max 250 words) (10%)