The comparative balance sheets for Dingdong Corporation appear below:

DINGDONG CORPORATION

Comparative Balance Sheet

Dec. 31, 2021 Dec. 31, 2020

Assets

Cash........................................................................... $ 68,200 $ 20,800

Accounts receivable.................................................. 10,000 16,300

Prepaid expenses...................................................... 9,000 6,000

Inventory.................................................................... 32,900 30,200

Equipment.................................................................. 30,000 60,000

Accumulated depreciationequipment......................... (17,000) (19,800)

Total assets................................................... $ 133,100 $ 113,500

Liabilities and Shareholders' Equity

Accounts payable....................................................... $ 5,600 $ 15,000

Bonds payable............................................................ 50,000 40,000

Common shares.......................................................... 23,000 23,000

Retained earnings....................................................... 54,500 35,500

Total liabilities and shareholders' equity.............. $ 133,100 $ 113,500

Additional information:

1. Profit for the year ending December 31, 2021 was $ 39,000.

2. Cash dividends of $ 20,000 were declared and paid during the year.

3. Equipment with cost of $ 30,000 and accumulated depreciation of $ 11,500 was sold for proceeds of $ 22,000.

4. Depreciation of property, plant and equipment for the year was properly recorded at $ 8,700.

Instructions (show all calculations)

a) Prepare a cash flow statement for the year ended December 31, 2021, using the indirect method. ( copy & use the format below)

b) Calculate free cash flow.

DINGDONG CORPORATION

Cash Flow Statement

Year Ended December 31, 2021

Operating activities

Profit

Adjustments to reconcile profit to net cash provided (used) by

operating activities:

Net cash provided (used) by operating activities

Investing activities

Net cash provided (used) by investing activities

Financing activities

Net cash provided (used) by financing activities

Net increase (decrease) in cash

Cash, January 1

Cash, December 31