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

MONTY CO. INCOME STATEMENT
Revenues				$	6,575,000
Operating expenses (excluding depreciation)		$4,923,000
Depreciation expense		879,000			5,802,000
Income before income tax					773,000
Income tax expense					347,850
Net income				$	425,150

Included in operating expenses is a $26,000 loss resulting from the sale of machinery for $279,000 cash. The company purchased machinery at a cost of $741,000. Monty reports the following balances on its comparative balance sheets at December 31.

MONTY CO. COMPARATIVE BALANCE SHEETS (PARTIAL)
		2020		2019
Cash		$687,650		$124,000
Accounts receivable		770,500		607,000
Inventory		840,500		870,500
Accounts payable		521,000		505,000

Income tax expense of $347,850 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled $187,000.

-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 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 $486,500 in the next year. Compute Montys free cash flow.

Free cash flow

$