Presented below and on the next page are the financial statements of Rajesh Company.

Additional data:
1. Depreciation expense is 13,300.
2. Dividends declared and paid were $20,000.
3. During the year, equipment was sold for $9,700 cash. This equipment cost $18,000 originally and had accumulated depreciation of $8,300 at the time of sale.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cashflow.

Rajesh Company Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2014 2013 37,000 33,000 30,000 60,000 (29,000) S 20,000 14,000 20,000 78,000 (24.000) $108,000 Total $131,000 Liabilities and Stockholders' Equit Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 29,000 7,000 27,000 18,000 50,000 15,000 8,000 33,000 14,000 38,000 108,000 Total Rajesh Company Income Statement For the Year Ended December 31, 2014 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $242,000 175,000 67,000 24,000 43,000 3,000 40,000 8,000 $ 32,000