Instructions (a) Prepare a statement of cash flows for 2020 using the indirect method. (b) Compute free cash flow.

ABC Corporation's comparative balance sheets are presented below. ABC CORPORATION Comparative Balance Sheets December 31 2019 2020 Cash $19,300 $10,000 Accounts receivable 21,200 23,000 Land 20,000 26,000 70,000 70,000 Building Accumulated depreciation Total (15,000 (10,000) $115.500 $119.000 Accounts payable $ 17,370 $ 30,000 Common stock 75,000 69,000 Retained earnings 23,130 20,000 Total $115.500 $119.000 Additional information: 1 - Net income was $27,630. Dividends declared and paid were $24,500. 2 - All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $3,900