The income statement for the year ended December 31, 2020, for Kingbird Manufacturing Company contains the following condensed information. $6,531,000 KINGBIRD CO. INCOME STATEMENT Revenues Operating expenses (excluding depreciation) $4,976,000 Depreciation expense 872,000 Income before income tax Income tax expense Net income 5,848,000 683,000 307,350 $ 375,650 Included in operating expenses is a $24,000 loss resulting from the sale of machinery for $298,500 cash. The company purchased machinery at a cost of $746,500. Kingbird reports the following balances on its comparative balance sheets at December 31. KINGBIRD CO. COMPARATIVE BALANCE SHEETS (PARTIAL), 2020 2019 Cash $652,650 $139,000 Accounts receivable 772,500 612,500 Inventory 847,000 865,500 Accounts payable 526,000 506,500 Income tax expense of $307,350 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled $188,000. 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).) KINGBIRD COMPANY Statement of Cash Flows Adjustments to reconcile net income to Kingbird 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 $485,500 in the next year. Compute Kingbird's free cash flow. Free cash flow Click if you would like to Show Work for this question: Open Show Work