Problem 12-07A Presented below are the financial statements of Bramble Company. Bramble Company Comparative Balance Sheets December 31 Assets 2022 Cash $ 70,000 Accounts receivable 40,000 Inventory 56,000 Property, plant, and equipment 120,000 Accumulated depreciation (64,000) Total $222,000 2021 $ 40,000 28,000 40,000 156,000 (48,000) $216,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 38,000 14,000 34,000 36,000 100,000 $222,000 $ 30,000 16,000 66,000 28,000 76,000 $216,000 $484,000 350,000 134,000 Bramble Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $36,000 Administrative expenses 12,000 Income from operations Interest expense Income before income taxes Income tax expense Net income 48,000 86,000 6,000 80,000 16,000 $ 64,000 Additional data: 1. Depreciation expense was $35,000. 2. Dividends declared and paid were $40,000. 3. During the year equipment was sold for $17,000 cash. This equipment cost $36,000 originally and had accumulated depreciation of $19,000 at the time of sale. Bramble Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities 7 Net Income 64,000 64,000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities IL | Depreciation Expense 35,000 Increase in Accounts Receivable (12,000) | Increase in Inventory (16,000) Increase in Accounts Payable 8,000 Decrease in Income Taxes Payable (2,000) Net Cash Provided by Operating Activities 86,000 Cash Flows from Investing Activities Sale of Equipment Cash Flows from Financing Activities Net Increase in Cash Cash at Beginning of Period Tcash at End of Period LINK TO TEXT LINK TO VIDEO x Your answer is incorrect. Try again. 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 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO