Presented below are the financial statements of Vaughn Manufacturing. Vaughn Manufacturing Comparative Balance Sheets December 31 Assets 2022 2021 Cash $ 73,500 $ 42,000 Accounts receivable 42,000 29,400 Inventory 58,800 42,000 Property, plant, and equipment 126,000 163,800 Accumulated depreciation (67,200) (50,400) Total $233,100 $226,800 Liabilities and Stockholders' Equity Accounts payable $ 39,900 $ 31,500 Income taxes payable 14,700 16,800 Bonds payable 35,700 69,300 Common stock 37,800 29,400 Retained earnings 105,000 79,800 Total $233,100 $226,800 Vaughn Manufacturing Income Statement For the Year Ended December 31, 2022 Sales revenue $508,200 Cost of goods sold 367,500 Gross profit 140,700 Selling expenses $37,800 Administrative expenses 12,600 50,400 Income from operations 90,300 Interest expense 6,300 Income before income taxes 84,000 Income tax expense 16,800 Net income $ 67,200 Additional data: 1. Depreciation expense was $36,750. 2. Dividends declared and paid were $42,000. 3. During the year equipment was sold for $17,850 cash. This equipment cost $37,800 originally and had accumulated depreciation of $19,950 at the time of sale. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) Vaughn Manufacturing Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income $ 67,200 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 2 $ 36,750 | Increase in Accounts Receivable 4 -12,600 Increase in Inventory 4 .16,800 Increase in Accounts Payable 8400 Decrease in Income Taxes Payable L -2100 13,650 Net Cash Provided by Operating Activities 80,850 Cash Flows from Investing Activities Sale of Equipment Cash Flows from Financing Activities Payment of Dividends Redemption of Bonds Issuance of Common Stock Net Cash used by Financing Activities Net Increase in Cash Net Increase in cash Cash at Beginning of Period Cash at End of Period Compute free cash flow. (Show a negative free cash flow with either a - sign e.g. - 15,000 or in parenthesis e.g. (15,000).) Free cash flow $