Presented here are the financial statements of Sage Hill Company. Sage Hill Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $ 105,000 $ 60,000 Accounts receivable 60,000 42,000 Inventory 84,000 60,000 Property, plant, and equipment 180,000 234,000 Accumulated depreciation (96,000) (72,000) Total $333,000 $324,000Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 57,000 21,000 51,000 54,000 150,000 $333,000 $ 45,000 24,000 99,000 42,000 114,000 $324,000 Sage Hill Company Income Statement For the Year Ended December 31, 2025 Sales revenue $726,000 Cost of goods sold 525,000 Gross prot 201,000 Selling expenses $54,000 Administrative expenses 18,000 72,000 Income from operations 129,000 Interest expense 9,000 Income before income taxes 120,000 Income tax expense 24,000 Net income $ 96,000 Additional data: 1. Depreciation expense was $52,500. 2. Dividends declared and paid were $60,000. 3. During the year, equipment was sold for $25,500 cash. This equipment originally cost $54,000 and had accumulated depreciation of $28,500 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Prepare a statement of cash ows using the indirect method. (Show amounts that decrease cash ow with either a - sign e.g. -15,000 or in parenthesis e3. (15,000).) SAGE HILL COMPANY Statement of Cash Flows Indirect Method Adjustments to reconcile net income to \fCompute free cash flow. (Show amounts that decrease free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Free cash flow $