Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flowsindirect method.

MIGITSU COMPANY Comparative Balance Sheets December 31
Assets		2020			2019
Cash		$73,000			$22,000
Accounts receivable		87,000			77,000
Inventories		169,000			193,000
Land		70,000			99,000
Equipment		258,000			200,000
Accumulated depreciation		(67,000	)		(30,000	)
Total		$590,000			$561,000
Liabilities and Stockholders Equity
Accounts payable		$35,000			$43,000
Bonds payable		150,000			213,000
Common stock ($1 par)		218,000			176,000
Retained earnings		187,000			129,000
Total		$590,000			$561,000

Additional information:

1.	Net income for 2020 was $87,000.
2.	Cash dividends of $29,000 were declared and paid.
3.	Bonds payable amounting to $63,000 were redeemed for cash $63,000.
4.	Common stock was issued for $42,000 cash.
5.	Equipment that cost $49,000 and had a book value of $29,400 was sold for $33,400 during 2020; land was sold at cost.

b. compute free cash flow

(a) Prepare a statement of cash flows for 2020 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)) Adjustments to reconcile net income to > S