Cash flows case: indirect method). Horny 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 camnings for the year are presented below. Horny Company Comparative Balance Sheet Dollars in Millions) 12/31/2020 1/1/2020 Current Assets Cash $ 49 $79 Account Receivables 545 550 Tuventory 660 615 Total Current Assets 1.154 1274 Property. Plant, and Equipment 1515 1.466 Les Accumulated Deprecation 765 641 Net Property, Plant, and Equapeet 250 Total Assets $2,104 52,099 SI55 165 20 Bonds payable 5390 629 Liability and Equity Current Liability: Account payable $250 Acered Liability 190 Income tax payable 76 Total current Liability 5516 450 Total Liability 966 Stockholders' Equity Common Stock 161 Retamed ergs 972 Total Stockholders' Equity 1.138 Total Liability and Stockholders' Equity $2,104 Horaay Income statement ((Dollars in Millions) 1,010 161 925 1,089 52,099 S3500 22550 1 OSO 175 Net Income Cost of yoods sold Gros Margin Selling and administrative Expenses Net Operating Income Nonoperation items Gain on sale of Equipment Income before Taxes Income tax Net Income 179 5 116 Horay also provided the followme information 1 The company sold equipment that had an original cost of $13 million and accumulated depreciation of Sullion. The cash proceeds from the sale were $$ million. The gan on the sale was $3 million 2. The company did not easy bonds during the year 3. The compuy paid a cash dividend during the year 4 The company did not complete any common stock transactions during the year durmg Required 1. Compute Honky's free cash flow