Home Free Inc. had the following financial information for the current year. 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: No new equipment was purchased this year. Assume any new stock was issued for cash Dividends were paid in cash. The building was purchased with cash Old equipment was sold for S1500 and had an original value of $28,000 Home Free, Inc. Income Statement For Current Year Ended December 31 Revenue: Sales Revenue 255,000 Expenses: Depreciation Expense Salaries Expense Rent Expense Utilities Expense Gain on Sale of Equipment Total Expenses 34,000 97,000 23.000 5.900 500 160,400 Net Tacome 94,600 Home Free, Inc. Balance Sheet December 31 Current Last Assets: Cash Accounts Receivable Supplies Inventory Total Current Assets Current Last Year Year 387,900 449,100 75.000 110,000 450 650 82,000 76,000 545,350 635,750 Liabilities & Equity: Accounts Payable Taxes Payable Total Current Liabilities Long Term Notes Payable 12.750 3.600 16.350 19.000 2.500 21,500 40,000 Equipment 77.000 105,000 Common Stock Paid in capital in excess of par value, common stock Total Paid in Capital 140.000 140,000 320,000 320,000 460,000 460,000 Less Accum Depreciation Building Total Plant Assets (65,000) (57.000) 130,000 12,000 48,000 Retained Earnings 211.000 162.250 TOTAL ASSETS 687,350 683,750 TOTAL LIABILITIES AND EQUITY 687,350 683.750 Home Free, Inc. Statement of Cash Flows For Year Ended December 31 Cash Flows from Operating Activities: Adjustments to reconcile net income to necash Total Adjustments Cash Flows from Investing Activities: Cash Flows from Financing Activities