The following are the financial statements of Wildhorse Company. WILDHORSE COMPANY Balance Sheet December 31 Assets Cash Accounts receivable 2021 2020 $44,840 $23,600 35,400 16,520 Inventory 31,860 23,600 Equipment 70,800 92,040 Accumulated depreciation-equipment (34,220 ) (28,320 ) Total $148,680 $127,440 Liabilities and Shareholders' Equity. Liabilities and Shareholders' Equity. Accounts payable $28,320 $17,700 Income taxes payable 8,260 9,440 Notes payable 31,860 38,940 Common shares 21,240 16,520 Retained earnings 59,000 44,840 Total $148,680 $127,440 WILDHORSE COMPANY Income Statement For the Year Ended December 31, 2021 Sales $285,560 Cost of goods sold 206,500 Gross profit 79,060 Operating expenses 28,320 Income from operations 50,740 Interest expense 3,540 Income before income taxes 47,200 Income tax expense 9,440 Profit $37,760 Additional Information: 1. 2. Dividends declared and paid were $23,600. Wildhorse reports under ASPE. During the year, equipment was sold for $10,030 cash. This equipment cost $21,240 originally and had a carrying value of $10,030 at the time of sale. 3. All depreciation expense, $17,110, is in the operating expenses. 4. All sales and purchases are on account. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) WILDHORSE COMPANY Cash Flow Statement - Indirect Method Adjustments to reconcile profit to S $ > +A > > > > +A > > > Calculate free cash flow. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Free cash flow $ eTextbook and Media