MICROSOFT CORPORATION Comparative Balance Sheets December 31 2021 2020 Cash $ 21,570 $ 10,700 Accounts receivable 18,200 23,400 Land 18,000 26,000 Building 70,000 70,000 Accumulated depreciation (15,000) (10,000) Total $112,770 $120,100 Accounts payable $ 12,370 $31,100 Common stock 75,000 69,000 Retained earnings 25,400 20,000 Total $112,770 $120,100

Additional information:

1. Net income was $27,900. Dividends declared and paid were $22,500. 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $5,900. REQUIRED (a) Prepare a statement of cash flows for 2021 using the indirect method. (b) Compute free cash flow.