The income statement for the year ended December 31, 2020, for Monty Manufacturing Company contains the following condensed information.

MONTY CO. INCOME STATEMENT
Revenues				$	6,559,000
Operating expenses (excluding depreciation)		$4,951,000
Depreciation expense		883,000			5,834,000
Income before income tax					725,000
Income tax expense					326,250
Net income				$	398,750

Included in operating expenses is a $26,500 loss resulting from the sale of machinery for $275,500 cash. The company purchased machinery at a cost of $742,000. Monty reports the following balances on its comparative balance sheets at December 31.

MONTY CO. COMPARATIVE BALANCE SHEETS (PARTIAL)
		2020		2019
Cash		$668,750		$129,500
Accounts receivable		774,500		624,000
Inventory		842,500		861,500
Accounts payable		526,000		503,000

Income tax expense of $326,250 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled $194,000.

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).)

MONTY COMPANY Statement of Cash Flows December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash
Loss on Sale of InvestmentsSale of Held-to-Maturity InvestmentsSale of Plant AssetsIncrease in Current LiabilitiesLoss on Sale of Plant AssetsGain on Sale of Plant AssetsDepreciation ExpenseNet IncomeIssuance of Bonds PayableGain on Sale of InvestmentsPurchase of Plant AssetsPayment of DividendsIncrease in Current Assets other than Cash		$
Adjustments to reconcile net income to
	$
		$

Monty 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 $519,000 in the next year. Compute Montys free cash flow.

Free cash flow

$