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Question 1 The following are the financial statements of Skysong, Inc. Skysong, Inc. Comparative Balance Sheets Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment (9,300 (23,200) 2019 2018 $37,900 $20,300 18,800 30,600 20,500 59,400 77,100 32,200 Total $130,800 $113,500 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings $28,300 $16,600 8,500 27,500 33,900 14,700 39,800 $130,800 $113,500 7,200 18,500 49,300 Total Income Statement For the Year Ended December 31, 2019 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes 38,300 Income tax expense Net income $241,200 175,900 65,300 23,000 42,300 4,000 7,200 $31,100 Additional data 1. Dividends declared and paid were $21,600 2. During the year, equipment was sold for $9,600 cash. This equipment cost $17,700 originally and had a book value of $9,600 at the time of sale 3. All depreciation expense, $14,200, is in the operating expenses 4. All sales and purchases are on account. Prepare a 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). Skysong, Inc. Statement of Cash Flows Adjustments to reconcile net income to Compute free cash flow Free cash flow Click if you would like to Show Work for this question: Open Show Work

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