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

PRONGHORN CO. INCOME STATEMENT
Revenues				$	6,580,000
Operating expenses (excluding depreciation)		$4,932,000
Depreciation expense		873,000			5,805,000
Income before income tax					775,000
Income tax expense					310,000
Net income				$	465,000

Included in operating expenses is a $23,500 loss resulting from the sale of machinery for $292,500 cash. The company purchased machinery at a cost of $747,000. Pronghorn reports the following balances on its comparative balance sheets at December 31.

PRONGHORN CO. COMPARATIVE BALANCE SHEETS (PARTIAL)
		2020		2019
Cash		$716,500		$128,000
Accounts receivable		773,000		601,000
Inventory		846,500		874,000
Accounts payable		522,500		506,500

Income tax expense of $310,000 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled $190,000.

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).)

PRONGHORN COMPANY Statement of Cash Flows _________________________
		$
Adjustments to reconcile net income to
	$
		$

Pronghorn 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 $512,000 in the next year. Compute Pronghorns free cash flow.

Free cash flow

$