Waterways prepared the balance sheet and income statement for the Irrigation installation division for 2022. 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 2021 and 2022 and the income statement for the year 2022 are presented below. Additional information: 1 Waterways sold a company vehicle for $24,000. The vehicle had been used for 10 years. It cost $79,400 when purchased and had a 10-year life and a $6,100 salvage value. Straight-line depreciation was used. 2 Waterways purchased with cash new equipment costing $209,900. 3 Prepaid expenses increased by $33,900. All changes in accounts payable relate to Inventory purchases. WATERWAYS CORPORATION-INSTALLATION DIVISION Balance Sheets December 31 2022 2021 Assets Current assets Cash $831,600 $748,100 Accounts receivable 687,500 546,200 Work in process 703,500 Inventory 16,800 7.500 Prepaid expenses 76,600 42.700 Total current assets 2,316,000 1,344,500 (a) Prepare a statement of cash flows using the indirect method for the year 2022. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) WATERWAYS CORPORATION-Installation Division Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2022 Property, plant, and equipment Land 298,000 298,000 Buildings 447,000 447,000 Equipment 929,100 798,600 Furnishings 40,700 Accumulated depreciation (478,600) 40,700 (487,700) Adjustments to reconcile net income to Total property, plant, and equipment 1,236,200 Total assets $3,552,200 1,096,600 $2,441,100 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Wages payable $157,400 100,900 $129,700 79,200 4,600 2,000 Interest payable 1,200 Other current liabilities 14,400 15,400 Revolving bank loan payable 15,100 Total current liabilities 293,600 226,300 Long-term liabilities Note payable 142,000 Total liabilities 435,600 226,300 Stockholders' equity Common stock Retained earnings 1,250,000 1,250,000 1,866,600 964,800 Total stockholders' equity 3,116,600 2,214,800 Total liabilities and stockholders' equity $3,552,200 $2,441,100 WATERWAYS CORPORATION-INSTALLATION DIVISION Income Statement For the Year Ending December 31, 2022 Sales Less: Cost of goods sold $5,522,786 3,118,400 2,404,386 Gross profit Operating expenses Advertising $49,600 Insurance 401,800 Salaries and wages 585,300 Depreciation 64,200 Other operating expenses 21.000 Total operating expenses 1,121,900 Income from operations 1,282,486 Other income Gain on sale of equipment 17,900 Other expenses Interest expense (12,100) Net other income and 5,800 expenses Income before income tax Income tax expense Net income 1.288.286 $ (c) Determine free cash flow for the year 2022. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 386,486 Free cash flow $ $901,800