Presented here are the financial statements of Bramble Company. BRAMBLE COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,000 $20.500 Accounts receivable 32,900 19.500 Inventory 30,400 20,900 Property, plant, and equipment 59,900 77,900 Accumulated depreciation (30,000) (23,200) Total $130,200 $115,600 Liabilities and Stockholders' Equity Accounts payable $28,100 $16.300 Income taxes payable 7,500 8,300 Bonds payable 27,500 32.900 Common stock 18,500 13,700 Retained earnings 48,600 44,400 Total $130,200 $115,600 BRAMBLE COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $241,500 Cost of goods sold 176,000 Gross profit 65,500 Selling expenses $17,400 Administrative expenses 5,800 23,200 Income from operations 42.300 Interest expense 2,600 Income before income taxes 39,700 Income tax expense 7,940 Net income $31,760 Additional data: 1. Depreciation expense was $15,100. 2. Dividends declared and paid were $27,560. 4. During the year, equipment was sold for $9.700 cash. This equipment originally cost $18,000 and had accumulated depreciation of $8,300 at the time of sale. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sig or in parenthesis eg. (15,000).) BRAMBLE COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Increase in Accounts Receivable Increase in Inventory (13400) (9500) Increase in Accounts Payable 11800 Decrease in Income Taxes Payable (800) 31760 < < < (b) Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg.-45 or parentheses e.g. (45)) Free Cash Flow eTextbook and Media