Presented below are the financial statements of Culver Corporation . Culver Corporation
Comparative Balance Sheets
December 31
Assets 2022 2021
Cash $101,500 $58,000
Accounts receivable 58,000 40,600
Inventory 81,200 58,000
Property, plant, and equipment 174,000 226,200
Accumulated depreciation (92,800) (69,600)
Total $321,900 $313,200
Liabilities and Stockholders' Equity
Accounts payable $55,100 $43,500
Income taxes payable 20,300 23,200
Bonds payable 49,300 95,700
Common stock 52,200 40,600
Retained earnings 145,000 110,200
Total $321,900 $313,200
Culver Corporation
Income Statement
For the Year Ended December 31, 2022
Sales revenue $701,800
Cost of goods sold 507,500
Gross profit 194,300
Selling expenses $52,200
Administrative expenses 17,400 69,600
Income from operations 124,700
Interest expense 8,700
Income before income taxes 116,000
Income tax expense 23,200
Net income $92,800
Additional data:
1. Depreciation expense was $50,750.
2. Dividends declared and paid were $58,000.
3. During the year equipment was sold for $24,650 cash. This equipment cost $52,200 originally and had accumulated depreciation of $27,550 at the time of sale.
A. Prepare a statement of cash flows using the indirect method.
B. Compute free cash flow.