The income statement for the year ended December 31, 2017, for Sage Manufacturing Company contains the following condensed information SAGE CO. INCOME STATEMENT $6,575,000 Revenues Operating expenses (excluding depreciation) Depreciation expense $4,912,000 862,000 5,774,000 Income before income tax 801,000 Income tax expense 360,450 $ 440,550 Net income Included in operating expenses is a $23,000 loss resulting from the sale of machinery for $262,000 cash. The company purchassed machinery at a cost of $732,000. Sage reports the following balances on its comparative balance sheets at December 31 SAGE CO. COMPARATIVE BALANCE SHEETS (PARTIAL) 2016 2017 Cash $651,550 $122,000 602,000 Accounts receivable 777,000 Inventory 863,000 830,000 Accounts payable 521,000 503,000 Income tax expense of $360,450 represents the amount paid in 2017. Dividends declared and paid in 2017 totaled $202,000. Prepare the 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).) SAGE COMPANY Statement of Cash Flows $ Adjustments to reconcile net income to $ $ Sage has an aggressive growth plan, which will require significant investments in plant and equipment over the next several years. Preliminary plans call for an investment of over $500,000 in the next year. Compute Sage's free cash flow Free cash flow