Cash flows case: indirect method). Horany Company has not yet prepared the statement of cash flows. The Balance sheet as of December 31, 2020, January 1, 2020 and the additional information regarding the statement of income and retained earnings for the year are presented below, Horany Company Comparative Balance Sheet (Dollars in Millions) Assets 12/31/2020 1/1/2020 $79 $ 49 645 S80 660 615 Current Assets: Cash Account Receivables Inventory Total Current Assets Property. Plaut, and Equipanent Less Accumulated Depreciation Net Property, Plant, and Equipment Total Assets 1,354 1,274 1,515 765 1,466 641 750 $2,104 825 $2,099 $155 165 70 $390 620 Liability and Equity Current Liability: Account payable $250 Accrued Liability 190 Income tax payable 76 Total current Liability 5516 Bonds payable 450 Total Liability 966 Stockholders' Equity: Common Stock 161 Retained earings 977 Total Stockholders' Equity 1,138 Total Liability and Stockholders' Equity $2,104 Horany Income statement ((Dollars in Millions) 1,010 161 928 1,089 $2,099 $3,600 2.550 1,050 875 175 Net Income Cost of goods sold Gross Margin Selling and administrative Expenses Net Operating Income Nonoperation items Gain on sale of Equipment Income before Taxes Income tax Net Income 4 179 63 S 116 Horany also provided the following information 1. The company sold equipment that had an original cost of $13 million and accumulated depreciation of S8 million. The cash proceeds from the sale were $8 million. The gain on the sale was $3 million 2. The company did not issue any bonds during the year. 3 The company paid a cash dividend during the year 4. The company did not complete any common stock transactions during the year Required: 1. Compute Horany's free cash flow