Prepare statement of cash flows and compute free cash flow. E14.9 (LO 2, 3) Cassandra SA's comparative statements of financial position are presented below. Cassandra SA Comparative Statements of Financial Position December 31 Equipment Accumulated depreciation equipment Investments Accounts receivable Cash Total Share capital-ordinary Retained earnings Bonds payable Accounts payable Total 2020 60,000 (14,000) 20,000 25,200 17,000 108,200 Instructions a. Prepare a statement of cash flows for 2020 using the indirect method. b. Compute free cash flow. 50,000 33,600 10,000 14,600 108,200 2019 70,000 (10,000) 13,000 22,300 17,700 113,000 45,000 24,900 30,000 13,100 113,000 Additional information: 1. Net income was 23,300. Dividends declared and paid were 14,600. 2. Equipment that cost 10,000 and had accumulated depreciation of 1,800 was sold for 3,500. 3. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. Exercises 14-43