\begin{tabular}{|c|c|c|c|} \hline \multicolumn{3}{|l|}{ Bonds payable } & \\ \hline Common stock & \multicolumn{2}{|c|}{54,000} & 42,000 \\ \hline Retained earnings & \multicolumn{2}{|c|}{150,000} & 114,000 \\ \hline Total & \multicolumn{2}{|c|}{$333,000} & $324,000 \\ \hline \multicolumn{4}{|c|}{\begin{tabular}{l} Sage Hill Company \\ Income Statement \\ For the Year Ended December 31, 2025 \end{tabular}} \\ \hline Sales revenue & & $726,000 & \\ \hline Cost of goods sold & & 525,000 & \\ \hline Gross profit & & 201,000 & \\ \hline Selling expenses & $54,000 & & \\ \hline Administrative expenses & 18,000 & 72,000 & \\ \hline Income from operations & & 129,000 & \\ \hline Interest expense & & 9.000 & \\ \hline Income before income taxes & & 120,000 & \\ \hline Income tax expense & & 24.000 & \\ \hline Net income & & $96,000 & \\ \hline \end{tabular} Additional data: 1. Depreciation experne was $52.500 2. Dividends declared and paid were $60,000, 3. During the year, equipment was sold for $25,500 cash. This equipment originally cost $54,000 and had accumulated depreciation of $28,500 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Prepare a statement of cash flows using the indirect method, (Show omoints that decrease cash flow with either o-sign es - 15,000 or in parenthesis es. (15, 000 )) Compute free cash flow. (Show amounts that decrease free cash flow with either a - sign es, 15,000 or in parenthesis eg. (15,000).) Free cash flow Presented here are the financial statements of Sage Hill Company