BONITA COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,200 $19,800 Accounts receivable 33,000 18,700 Inventory 30,400 20,400 Property, plant, and equipment 59,300 78,000 Accumulated depreciation (29,300) (23,300) Total $130,600 $113,600 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,700 $ 16,000 7,300 8,300 27,400 33,100 18,200 14,300 49,000 41,900 $130,600 $113,600 BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $242,900 Cost of goods sold 175,600 Gross profit 67,300 Selling expenses $18,600 Administrative expenses 6,200 24,800 Income from operations 42,500 Interest expense 4,000 Income before income taxes 38,500 Income tax expense 7,700 Net income $30,800 Additional data: Depreciation expense was $16,100. 2. Dividends declared and paid were $23,700. 3. 4. During the year, equipment was sold for $8,600 cash. This equipment originally cost $18,700 and had accumulated depreciation of $10,100 at the time of sale. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account. Prepare a statement of cash flows for Bonita Company using the direct method. (Show amounts that decrease cash flow with eith -sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities Cash Receipts from Customers Less cash payments: To Suppliers For Operating Expenses For Income Taxes For Interest BONITA COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 > > < Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities 69 172,900 8,700 i 8,700 i 4,000 i 8,600 228,600 194,300 34,300 8,600 Payment of Dividends Redemption of Bonds Issuance of Common Stock Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period (23,700) (5.700) 3,900 (25,500) 17,400 19,800 $ 37,200 (b) Compute free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Free cash flow $