JOHNSTON COMPANY Comparative Balance Sheets December 31 Additional data: 1. Dividends of $23,000 were declared and paid. 2. During the year equipment was sold for $10,000 cash. This equipment cost $15,000 originalty and had a book value of $10,000 at the time of sale. 3. All depreciation expense, $8,000, is in the operating expenses. 4. All sales and purchases are on account. 5. Additional equipment was purchased for $7,000 cash. Instructions (a) Prepare a statement of cash fows using the indirect method (b) Campute free cash flow. Work