II Cash flows case: indirect method Horny Company has not yet prepared the statement of cash So The Balance sheet as December 31, 2020, January 1, 2020 and the additional information regarding the statement of income and retained camnings for the year are presented Horany Company Comparatie Balance Sheet Dollars in Million Ae 1201220 Current Assets Cash 500 Account Receivables Inventory 11 Total Current Arts 34 Property and Equipment Les Acompreciatim Net Property Plant and Equipment Total Assets 52.104 Liability and quity 5155 10 Accountable Acred Liability Income tax payable Total current Liability Boods payable Totality Stockholders' Equity Common Stock Retained wings Total Stockholders Keity Total Liability and Stockholders' Equity 161 LU 52.104 TON 52.000 Horny Income states Dollars Net Income Cost of goods sold Gross Margin Selling and administratives Net Operating Income Guin on sale of Equipient Income before Tues Income Netcome 1998 1999 5116 Horny bio povided the followmg information The company solid equipment that had an engine co 513 cumulated depreciative of 58 milho. The cash price from the lewe in the pain on the sale w 5 milli 2 The company do my bende during the year The company or a cash divided during the 4. The company is complete any more that 2. Compute Horany's free cash flow = Cash flows case: (indirect method). Horany Company has not yet prepared the statement of cash flows. The Balance sheet as of December 31, 2020, January 1, 2020 and the additional information regarding the statement of income and retained earnings for the year are presented below. Horany Company Comparative Balance Sheet (Dollars in Millions) Assets 12/31/2020 1/1/2020 Current Assets: Cash $ 49 $79 Account Receivables 645 580 Inventory Total Current Assets 1.354 1,274 Property, Plant, and Equipment 1,515 1,466 Less Accumulated Depreciation 765 641 Net Property. Plant, and Equipment 750 825 Total Assets $2,104 $2,099 660 615 S250 190 5155 165 70 5390 76 Liability and Equity Current Liability: Account payable Accrued Liability Income tax payable Total current Liability Bonds payable Total Liability Stockholders' Equity: Common Stock Retained earnings Total Stockholders' Equity Total Liability and Stockholders' Equity $516 450 966 620 1,010 161 977 1,138 $2,104 161 928 1,089 $2,099 Horany Income statement (Dollars in Millions) $3,600 2.550 1,050 875 175 Net Income Cost of goods sold Gross Margin Selling and administrative Expenses Net Operating Income Nonoperation items: Gain on sale of Equipment Income before Taxes Income tax Net Income - 4 179 63 S 116 Horany also provided the following information: 1. The company sold equipment that had an original cost of $13 million and accumulated depreciation of $8 million. The cash proceeds from the sale were $8 million. The gain on the sale was $3 million. 2. The company did not issue any bonds during the year. 3. The company paid a cash dividend during the year. 4. The company did not complete any common stock transactions during the year