Thanks, all! Update. Rear hub trashed. Unbelievably the local bike co-op had three 20-inch 7-speed wheels. Bought the best one for only $20! Rear v-brakes need cleaning and/or replacing, again, a cheap co-op fix. My concern now is that the derailer hanger is loose. What I'm thinking is the previous owner exceeded the weight limit and the rear hub seized. spokes broke and the derailer hanger got yanked. I hope it's not stripped.

After I get it running I will rebuild or replace the original wheel, get a front fender, other accesories and...as my other bikes will tell you, it never stops.

Here's the bike!