A) Prepare a statement of cash flows

B) Compute free cash flow

The following are the financial statements of Sunland Company. 2019 Sunland Company Comparative Balance Sheets December 31 Assets 2020 Cash $36,900 Accounts receivable 32,100 Inventory 29,600 Equipment 59,800 Accumulated depreciation-equipment (29,700) Total $128,700 $20,600 19,200 20,300 78,000 (23,800) $114,300 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,200 7,300 26,500 18,300 48,400 $128,700 $ 16,900 8,100 32,900 14,500 41,900 $114,300 Sunland Company Income Statement For the Year Ended December 31, 2020 Sales revenue $242,200 Cost of goods sold 175,100 Gross profit 67,100 Operating expenses 24,200 Income from operations 42,900 Interest expense 3,000 Income before income taxes 39,900 Income tax expense 7,800 Net income $32.100 Additional data: 1. Dividends declared and paid were $25,600. During the year, equipment was sold for $9,700 cash. This equipment cost $18,200 originally and had a book value of $9,700 at the time of sale. 3. All depreciation expense, $14,400, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. Prepare a statement of cash flows for Sunland Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Sunland Company Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Receipts from Customers Tess cash payments: To Suppliers For Operating Expenses For Income Taxes For Interest Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Investing Activities Issuance of Common Stock Redemption of Bonds Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period