Problem 12-08A Presented below are the financial statements of Sandhill Company. Sandhill Company Comparative Balance Sheets December 31 Assets 2022 Cash $ 63,000 Accounts receivable 36,000 Inventory 50,400 Property, plant, and equipment 108,000 Accumulated depreciation (57,600) Total $199,800 2021 $36,000 25,200 36,000 140,400 (43,200 ) $194,400 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 34,200 12,600 30,600 32,400 90,000 $199,800 $ 27,000 14,400 59,400 25,200 68,400 $194,400 $435,600 315,000 120,600 Sandhill Company Income Statement For the Year Ended December 31, 2022 Sales revenue Cost of goods sold Gross profit Selling expenses $32,400 Administrative expenses 10.800 Income from operations Interest expense Income before income taxes Income tax expense Net income 43,200 77,400 5,400 72,000 14.400 $57,600 Additional data: 1. Depreciation expense was $31,500. 2. Dividends declared and paid were $36,000. 3. During the year equipment was sold for $15,300 cash. This equipment cost $32,400 originally and had accumulated depreciation of $17,100 at the time of sale. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and purchases are on account. Prepare a statement of cash flows for Sandhill Company using the direct method. (Sh. Sandhill Company Statement of Cash Flows LINK TO TEXT Compute free cash flow. (Show a negative free cash flow with either a sign .g Free cash flow