Home Free Inc. had the following financial information for 2013. Prepare the statement of cash flows using the indirect method for the operating section. Briefly analyze the statement -- what do you learn from it? Additional information: Old equipment was sold for $1300 cash when the original cost of the equipment sold was S28.800. No new equipment was purchased in 2013. Land was purchased with cash. Assume any new stock was issued for cash. Dividends were paid in Cash. Enter amounts subtracted or cash paid used as negative amounts. Home Free, Inc. Income Statement For Year Ended December 31, 2013 Revenue: Sales Revenue 270,000 Expenses: Depreciation Expense Salaries Expense Rent Expense Utilities Expense Loss on Sale of Equipment Total Expenses 33.000 96,000 25.000 5,600 500 160,100 Net Income 109.900 Home Free, Inc. Balance Sheet December 31, 2013 Assets: Cash Accounts Receivable Supplies Inventory Total Current Assets 2013 2012 359,750 422,500 75,000 110.000 500 750 82,000 77.000 517.250 610.250 Liabilities & Equity: Accounts Payable Taxes Payable Total Current Liabilities Long Term Notes Payable 2013 2012 12.750 17.750 3,500 2.300 16,250 20,050 35,000 145.000 145,000 295,000 295.000 82,000 110.800 Common Stock Paid in capital in excess of par value, common stock Total Paid in Capital 440,000 440,000 Equipment Less: Accum Depreciation Land Total Plant Assets (65,000) (59,000) 135.000 17,000 51,800 Retained Earnings 213.000 167.000 TOTAL ASSETS 669.250 662,050 TOTAL LIABILITIES AND EQUITY 669.250 662,050 Home Free, Inc. Statement of Cash Flows For Year Ended December 31, 2013 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash Total Adjustments Cash Flows from Investing Activities: Cash Flows from Financing Activities