Waterways Continuing Problem 17 (Indirect Method) Waterways prepared the balance sheet and income statement for the irrigation installation division for 2020. Now the company also needs to prepare a statement of cash flows for the same division. The comparative balance sheets for Waterways Corporation's Irrigation Installation Division for the years 2019 and 2020 and the income statement for the year 2020 are presented below Additional information: 1. Waterways sold a company vehicle for $24,300. The vehicle had been used for 10 years. It cost $79,800 when purchased and had a 10-year life and a $6,000 salvage value. Straight-line depreciation was used. 2. Waterways purchased with cash new equipment costing $207,100 3. Prepaid expenses increased by $32,900. All changes in accounts payable relate to inventory purchases. WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement For the Year Ending December 31, 2020 Sales Less: Cost of goods sold Gross profit Operating expenses $5,539,071 3,141,800 2,397,271 Advertising Insurance Salaries and wages Depreciation Other operating expenses $50,000 397,300 580,400 73,100 21,000 Total operating expenses Income from operations Other income 1,121,800 1,275,471 Gain on sale of equipment Other expenses 18,300 (12,200) Interest expense Net other income and expenses Income before income tax Income tax expense Net income 6,100 1,281,571 384,471 $897,100 (a) Prepare a statement of cash flows using the indirect method for the year 2020. ( (a) Prepare a statement of cash flows using the indirect method for the year 2020. (Show a WATERWAYS CORPORATION-Installation Division Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to (c) Determine free cash flow for the year 2020. (Enter negative amount using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Free cash flow Click if you would like to Show Work for this question: Open Show Work