Question

Windsor, Inc. Comparative Balance Sheets December 31
Assets		2020			2019
Cash		$36,000			$21,000
Accounts receivable		32,700			18,900
Inventory		30,100			20,100
Equipment		59,600			77,600
Accumulated depreciation—equipment		(29,400	)		(23,300	)
Total		$129,000			$114,300
Liabilities and Stockholders’ Equity
Accounts payable		$28,000			$16,800
Income taxes payable		7,200			8,400
Bonds payable		26,700			32,100
Common stock		17,700			13,400
Retained earnings		49,400			43,600
Total		$129,000			$114,300

Windsor, Inc. Income Statement For the Year Ended December 31, 2020
Sales revenue		$242,500
Cost of goods sold		175,200
Gross profit		67,300
Operating expenses		24,900
Income from operations		42,400
Interest expense		2,700
Income before income taxes		39,700
Income tax expense		7,400
Net income		$32,300

Additional data:

1.		Dividends declared and paid were $26,500.
2.		During the year, equipment was sold for $9,600 cash. This equipment cost $18,000 originally and had a book value of $9,600 at the time of sale.
3.		All depreciation expense, $14,500, is in the operating expenses.
4.		All sales and purchases are on account. Compute free cash flow. Free cash flow $

Answer 1

Please find the attached sheets,

Please comment for any explanation or assistance,

Thanks,