The comparative balance sheets for Beckwith Products Company are presented below.

Additional Information:
1. Net income for 2019 was $58,400.
2. Cash dividends of $25,000 were declared and paid during 2019.
3. During 2019, Beckwith issued $50,000 of notes payable and repaid $35,000 principal relating to notes payable.
4. Common stock was issued for $50,000 cash.
5. Depreciation expense was $18,650, and there were no disposals of equipment.
Required:
1. Prepare a statement of cash flows (indirect method) for Beckwith Products for 2019.
2. Compute the following cash-based performance measures:
(a) Free cash flow
(b) Cash flow adequacy. (Assume that the average amount of debt maturing over the next 5 years is $85,000.
3. What can you conclude by examining the patterns in Beckwith's cash flows?

2019 2018 Assets: $ 36,950 75,100 45,300 256,400 $ 25,000 Cash Accounts receivable 78,000 Inventory Property, plant, and equipment Accumulated depreciation Total assets 36,000 153,000 20,000 $272,000 38,650 $375,100 Liabilities and Equity: Accounts payable Interest payable Wages payable Notes payable Common stock Retained earnings Total liabilities and equity $ 13,100 11,500 8,100 105,000 100,000 137,400 $375,100 $ 11,000 8,000 9,000 90,000 50,000 104,000 $272,000