The following are the financial statements of Sheffield Corp..Sheffield Corp.Comparative Balance SheetsDecember 31
Assets
2020
2019
Cash$37,400
$19,100
Accounts receivable32,000
19,700
Inventory29,600
20,100
Equipment59,600
78,000
Accumulated depreciation—equipment(29,600
)
(23,500
)
   Total$129,000
 $113,400
 Liabilities and Stockholders' Equity
Accounts payable$28,100
$16,000
Income taxes payable7,000
8,100
Bonds payable27,400
32,200
Common stock18,300
13,300
Retained earnings48,200
 43,800
    Total$129,000
 $113,400
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Sheffield Corp.
Income Statement
For the Year Ended December 31, 2020
Sales revenue$242,400
Cost of goods sold176,800
Gross profit65,600
Operating expenses23,400
Income from operations42,200
Interest expense3,000
Income before income taxes39,200
Income tax expense9,000
Net income$30,200
Additional data:
1.Dividends declared and paid were $25,800.2.During the year, equipment was sold for $9,800Â cash. This equipment cost $18,400Â originally and had a book value of $9,800 at the time of sale.3.All depreciation expense, $14,700, is in the operating expenses.
4.All sales and purchases are on account.
Prepare statement of cash flows using the indirect method.Â
Compute free cash flow.