SWIFTY COMPANY Comparative Balance Sheets December 31 Assets 2022 2021 Cash $36,300 $19,000 Accounts receivable 32,900 19,900 Inventory 30,800 20,300 Property, plant, and equipment 59,900 77,400 Accumulated depreciation (29,300) (23,300) Total $130,600 $113,300 Liabilities and Stockholders' Equity Accounts payable $28,400 $ 16,600 Income taxes payable 7,000 8,100 Bonds payable 27,800 32,000 Common stock 17,800 14,300 Retained earnings 49,600 42,300 Total $130,600 $113,300 SWIFTY COMPANY Income Statement For the Year Ended December 31, 2022 Sales revenue $242,000 Cost of goods sold 176,500 Gross profit 65,500 Selling expenses $17,325 Administrative expenses 5,775 23,100 Income from operations 42,400 Interest expense 2,500 Income before income taxes 39,900 Income tax expense 7,980 Net income $31,920 Additional data: 1. Depreciation expense was $15,900. 2. Dividends declared and paid were $24,620. 3. During the year, equipment was sold for $7,600 cash. This equipment originally cost $17,500 and had accumulated depreciation of $9,900 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. S Common stock was issued at par for cash. (a) Your answer is partially correct. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,00 or in parenthesis e.g. (15,000)) SWIFTY COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities SWIFTY COMPANY Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Payable Increase in Inventory Decrease in Income Taxes Payable Increase in Accounts Receivable Net Cash Provided by Operating Activities A 15900 tA 29300 Net Cash Provided by Operating Activities Cash Flows from Investing Activities. Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Issuance of Common Stock Redemption of Bonds Payment of Dividends Net Cash Used by Financing Activities Net Increase in Cash Cash at Beginning of Period Cash at End of Period 7600 -24620 Compute free cash flow. (Enter negative amount using either a negative sign preceding the number eg. -45 or parentheses e.g. (45)) Free Cash Flow