Problem 12-07A Presented below are the financial statements of Swifty Corporation. Swifty Corporation Comparative Balance Sheets December 31 Assets 2022 Cash $ 28,000 Accounts receivable 16,000 Inventory 22,400 Property, plant, and equipment 48,000 Accumulated depreciation (25,600 ) Total $88,800 2021 $ 16,000 11,200 16,000 62,400 (19,200) $86,400 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $ 15,200 5,600 13,600 14,400 40,000 $88,800 $ 12,000 6,400 26,400 11,200 30,400 $86,400 Total $193,600 140,000 Swifty Corporation Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $14,400 Administrative expenses 4,800 Income from operations 53,600 19,200 34,400 2,400 Interest expense Income before income taxes 32,000 6,400 Income tax expense Net income $ 25,600 Additional data: 1. Depreciation expense was $14,000. 2. Dividends declared and paid were $16,000. 3. During the year equipment was sold for $6,800 cash. This equipment cost $14,400 originally and had accumulated depreciation of $7,600 at the time of sale. Swifty Corporation Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income 25,600 $ Adjustments to reconcile net income to X Net Cash used by Operating Activities Depreciation Expense 14,000 X Increase in Accounts Receivable 4,800 X Increase in Inventory 6,400 Increase in Accounts Payable 3,200 X Decrease in Income Taxes Payable 800 5,200 Net Cash Provided by Operating Activities 30,800 Cash Flows from Investing Activities Sale of Equipment 6,800 Cash Flows from Financing Activities X Redemption of Bonds 12,800 X Payment of Dividends 16,000 Issuance of Common Stock 3,200 Net Cash used by Financing Activities 25,600 Net Increase in Cash 12,000 Cash at Beginning of Period 16,000 Cash at End of Period 28,000 HA 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