Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flowsindirect method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $72,000 $20,000 Accounts receivable 87,000 75,000 Inventories 170,000 192,000 Land 73,000 101,000 Equipment 260,000 200,000 Accumulated depreciation (68,000 ) (31,000 ) Total $594,000 $557,000 Liabilities and Stockholders Equity Accounts payable $37,000 $51,000 Bonds payable 149,000 210,000 Common stock ($1 par) 218,000 175,000 Retained earnings 190,000 121,000 Total $594,000 $557,000 Additional information: 1. Net income for 2020 was $99,000. 2. Cash dividends of $30,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $43,000 cash. 5. Equipment that cost $51,000 and had a book value of $30,600 was sold for $34,600 during 2020; land was sold at cost. (a) Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) MIGITSU COMPANY Statement of Cash Flows $ Adjustments to reconcile net income to : $

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(b) Compute free cash flow for 2020.