Comparative Balance Sheet December 31 2018 2017 Assets Cash Accounts Receivable Inventory Equipment Accumulated depreciation-equipment $38,000 30,000 27,000 60,000 $20,000 14,000 20,000 78,000 (24 Tota 126,000 $108,000 Accounts payable Incometaxes payable Bonds payable Common stock Retained eamings $24,000 7,000 27,000 18,000 0,000 $126,000 $15,000 8,000 33,000 14000 38,000 $108,000 Tota ABC COMPANY Income Statement For the Year ended December 31, 2018 Sales revenue Cost of goods sold Gross profit Operating expenses Incomefrom operations Interest expense Income before income taxes Incometax expense Net income 5242,000 175,000 67,000 24,000 43,000 3,000 40,000 8,000 $32,000 Additional data: 1. Dividends declared and paid were $25,000. 2. During the year equipment was sold for $9,500 cash. This equipment cost $18,000 originally and had a book value of S8,500 at the time of sale. 3. All depreciation expense, $15,500, is in the operating expenses. 4. All sales and purchases are on account. (a) Prepare a statement of cash flows using the indirect method. (b) Compute free cash flow