QUESTION 1 (47 marks) Wallace-Lague Corporation's comparative balance sheet for the year ended December 31, 2020 and 2019 in millions of dollars appear below: Balance Sheet as at December 31 ($' million) Assets: 2020 2019 $ 33 $ 27 Cash and cash equivalent.... Accounts receivable....... 52 61 41 40 Inventory........... Plant and equipment..... Less accumulated depreciation... 531 460 330 291 Total assets....... $ 327 $ 297 $44 $48 21 22 17 21 Liabilities and stockholders' equity: Accounts payable..... Wages payable........ Income taxes payable..... Bonds payable due Dec 2028.... Deferred taxes payable due April 2023.. Common stock, $0.50 par, outstanding.. Retained earnings........... Total liabilities and stockholders' equity...... 65 60 16 18 71 70 93 58 $327 $297 312 Income Statement for the year ended December 31, 2020 ($' million) Sales revenue $515 Cost of goods sold Gross margin 203 Selling and administrative expense (inclusive of depreciation expense) 134 Net operating income 69 Income taxes 21 Net income $48 During the year, $1 million worth of stock dividends were paid out to the common shareholders and there is no preferred stock. There was no disposal of assets during the year. Required: (a) Prepare the Statement of Cash flows for Wallace-Lague Corporation for the year ended December 31, 2020 using the Indirect Method. (15 marks) (b) What is Lague's Free Cash Flow