*Please calculate part b only. The information is provided for Part a. Thank you.

Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $74,000 $23,000 Accounts receivable 86.000 75,000 Inventories 169.000 192,000 Land 73.000 101,000 Equipment 260,000 201.000 Accumulated depreciation (66,000 (35,000) Total $596,000 $557.000 Liabilities and Stockholders' Equity Accounts payable $35.000 $49.000 Bonds payable 151,000 212.000 Common stock ($1 par) 217.000 176,000 Retained earnings 193,000 120,000 Total $596,000 $557.000 Additional information: 1. Net income for 2020 was $105,000. 2. Cash dividends of $32,000 were declared and paid. 3. Bonds payable amounting to $61,000 were redeemed for cash $61,000. 4. Common stock was issued for $41,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $35.000 during 2020; land was sold at cost. Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis e.g. (15,000).) MIGITSU COMPANY Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 105,000 Adjustments to reconcile net income to Net Cash Provided by Operating Actlvitles Gain on Disposal of Equipment $ (5,000) Depreciation Expense 51,000 Increase in Accounts Recevable (11,000) 23,000 Decrease in Inventory Decrease in Accounts Payable (14,000) 44,000 Net Cash Provided by Operating Activitles 149,000 Cash Flows from Investing Activitles Sale of Equipment 35,000 Sale of Land 28,000 Purchase of Equipment (109,000) Net Cash Used by Investing Activities (46,000) Cash Flows from Financing Activities Issuance of Common Stock Redemption of Bonds 41,000 (61,000) Payment of Cash Dividends (32.000) Net Cash Used by Financing Actlvitles (52,000) Net Increase in Cash 51,000 Cash at Beginning of Period 23,000 Cash at End of Period $ 74,000 (b) Compute free cash flow for 2020, Free cash flow $