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 $1100 cash when the original cost of the equipment sold was S24,800. 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. Home Free, Inc Income Statement For Year Ended December 31,2013 Revenue: Sales Revenue 255,000 Expenses iation Expense Salaries Expense Rent Expense Utilities Expense Loss on Sale of Equipment 31,000 96,000 24,000 5,700 Total Expenses 157,400 Net Income 97,600 Home Free, Inc. Balance Sheet December 31,2013 2013 2012 Liabilities & Equity: Assets Cash Accounts Receivable Supplies Inventory 2013 2012 13,500 18,750 3.5502,200 17,050 20,950 37,000 353,450 416,050 Accounts Payable 80,000 120,000Taxes Payable 600 81,000 850Total Current Liabilities 77,000Long Term Notes Payable Total Current Assets 515,050 613,900 Common Stock 160,000 160,000 Paid in capital in excess of par value, common stock 90,000 114,800 290,000 290,000 quipment Less: Accum. Depreciation Land (65,000) (57,000 Total Paid in Capital 140,000 25,000 57,800Retained Earnings 450,000 450,000 Total Plant Assets 213,000 163,750 TOTAL ASSETS 680,050 671,700 TOTAL LIABILITIES AND EQUITY 680,050 671,700 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