Accounting question is attached that I am having problems understanding.

KURTZEL COMPANY Comparative Balance Sheets December 31 Assets 2014 Cash 2013 $ 119,595 Accounts receivable Inventory $ 68,340 68,340 47,838 95,676 Property, plant, and equipment 68,340 205,020 266,526 Accumulated depreciation (109,344 ) Total $379,287 $369,036 (82,008 ) Liabilities and Stockholders' Equity Accounts payable $ 64,923 $ 51,255 Income taxes payable 23,919 27,336 Bonds payable 58,089 112,761 Common stock 61,506 Total 47,838 170,850 129,846 $379,287 Retained earnings $369,036 KURTZEL COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue $826,914 Cost of goods sold 597,975 Gross profit 228,939 Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $61,506 20,502 82,008 146,931 10,251 136,680 27,336 $ 109,344 Additional data: 1. Depreciation expense was $59,797. 2. Dividends declared and paid were $68,340. 3. During the year equipment was sold for $29,045 cash. This equipment cost $61,506 originally and had accumulated depreciation of $32,461 at the time of sale. (a) Your answer is partially correct. Try again. 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).) KURTZEL COMPANY Statement of Cash Flows For the Year Ended December 31, 2014 Cash Flows fromOperating Activities $ Net Incom e 109344 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ 59797 Increase in Accounts Receivable -20502 Increase in Inventory -27336 Increase in Accounts Payable 13668 Decrease in Incom Taxes Payable e -3417 22210 Net Cash Provided by Investing Activities 131554 Cash Flows fromInvesting Activities Sale of Equipm ent 29045 Cash Flows fromFinancing Activities Issuance of Com on Stock m 13668 Redem ption of Bonds -54672 Paym of Dividends ent -68340 Net Cash used by Financing Activities Net Increase in Cash -109344 51255 Cash at Beginning of Period 68340 $ Cash at End of Period 119595 Click if you would like to Show Work for this question: Open Show Work SHOW ANSWER LINK TO TEXT LINK TO VIDEO LINK TO TEXT Attempts: 3 of 3 used (b) Compute these cash-based measures: (Round ratios to 2 decimal places, e.g. 2.56.) (1) Current cash debt coverage. times (2) Cash debt coverage. times (3) Free cash flow. $