Pearl Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $ 98,000 $56,000 Accounts receivable 56,000 39,200 Inventory 78,400 56,000 Property, plant, and equipment 168,000 218,400 Accumulated depreciation (89,600) (67,200) Total $310,800 $302,400 Liabilities and Stockholders' Equity Accounts payable $53,200 $42,000 Income taxes payable 19,600 22,400 Bonds payable 47,600 92,400 Common stock 50,400 39,200 Retained earnings 140,000 106,400 Total $310,800 $302,400 Pearl Company Income Statement For the Year Ended December 31, 2025 Sales revenue $677,600 Cost of goods sold 490,000 Gross profit 187,600 Selling expenses $50,400 Administrative expenses 16,800 67,200 Income from operations 120,400 Interest expense 8,400 Income before income taxes 112,000 Income tax expense 22,400 $89,600 Net income Additional data: 1. Depreciation expense was $49,000. 2. Dividends declared and paid were $56,000. 3. During the year, equipment was sold for $23,800 cash. This equipment originally cost $50,400 and had accumulated depreciation of $26,600 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. PEARL COMPANY Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net Income to 89600 (b) Compute free cash flow. (Show amounts that decrease free cash flow with either a-sign eg-15,000 or in parenthesis e.g. (15,000).) Free cash flow $