Financial and Managerial Accounting: P13-7A Presented below are the financial statements of Nosker

Financial and Managerial Accounting P13-7A Prepare a Statement of Cash Flows - Indirect method, and compute free cash flow
Presented below are the financial statements of Nosker Company.
NOSKER COMPANY
Comparative Balance Sheets December 31
Assets  2017   2016 
Cash  38,000   20,000 
Accounts receivable  30,000   14,000 
Inventory  27,000   20,000 
Equipment  60,000   78,000 
Accumulated depreciation—equipment  (29,000)  (24,000)
Total  $126,000   $108,000 
 
Liabilities and Stockholders' Equity
Accounts payable  24,000   15,000 
Income taxes payable  7,000   8,000 
Bonds payable  27,000   33,000 
Common stock  18,000   14,000 
Retained earnings  50,000   38,000 
Total  $126,000   $108,000 
 
NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales revenue 242,000 
Cost of goods sold 175,000 
Gross profit 67,000 
Operating expenses 24,000 
Income from operations 43,000 
Interest expense 3,000 
Income before income taxes 40,000 
Income tax expense 8,000 
Net income $32,000 
 
Additional data:
1. Dividends declared and paid were $20,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense, $14,500, is in the operating expenses.
4. All sales and purchases are on account.
 
Instructions
1. Prepare a statement of cash flows using the indirect method.
2. Compute free cash flow.
 
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