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Problem 12-07A Presented below are the financial statements of Novak Company Novak Company Comparative Balance Sheets December 31 Assets 2022 Cash $ 112,000 Accounts receivable 64,000 Inventory 89,600 Property, plant, and equipment 192,000 Accumulated depreciation (102,400) Total $355,200 2021 $ 64,000 44,800 64,000 249,600 (76,800 ) $345,600 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 60,800 22,400 54,400 57,600 160,000 $355,200 $ 48,000 25,600 105,600 44,800 121,600 $345,600 $774,400 560,000 214,400 Novak Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $57,600 19.200 Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense 76,800 137,600 9,600 128,000 25,600 $ 102,400 Net income Additional data: 1. Depreciation expense was $56,000. 2. Dividends declared and paid were $64,000. 3. During the year equipment was sold for $27,200 cash. This equipment cost $57,600 originally and had accumulated depreciation of $30,400 at the time of sale. Prepare a sa n of cash flowing the indirect method. (Show amounts that decrease cash flow with vither a sig . Statement of Cash Flows For the Year Ended December 31, 2022 V Cash Flows from puting Activities 02400 a Net Income s to reconcil net income to ash Provided by Operating Activ Depreciation Expo unts Receivable Inici Inventory BOBB Decrease in Income Tax Payable | 20000 23200 Net Cash Provided by Operating Activity y Cash Flows from Investing Activit Sale of Equipment F rom Financing Acts Redemption of Bands I ssuance of common stock Payment of Dividence TNICA sed by F ong Activities 102400 Net Increase in Cash Casal Baging of Period Casal End of Parad Your sweis incorred. Try again Compute free cash flow. (Show a negative free Free cash flow i 342300