Rocks Corporations comparative balance sheets are presented below:

Instructions:

1. Prepare a statement of cash flows for 2020 using the indirect method.
2. Compute free cash flow.

Cash Accounts receivable Land Building Accumulated depreciation Total PLANNER CORPORATION Comparative Balance Sheets December 31 2020 $ 21,570 18,200 18,000 70,000 (15,000) $112,770 2019 $ 10,700 23,400 26,000 70,000 (10,000) $120,100 Accounts payable Common stock Retained earnings Total Additional information: $12.370 75,000 25,400 $112,770 $ 31,100 69,000 20,000 $120,100 1. Net income was $27,900. Dividends declared and paid were $22,500. 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $5,900