Presented below are the financial statements of Rocastle plc.

ROCASTLE plc
Income Statement
For the Year Ended December 31, 2017
Sales revenue.....................................‚¬286,000
Cost of goods sold.................................204,000
Gross profit..........................................82,000
Operating expenses.................................37,000
Income from operations............................45,000
Interest expense.......................................7,000
Income before income taxes.......................38,000
Income tax expense.................................10,000
Net income........................................‚¬ 28,000
Additional data:
1. Depreciation expense w as ‚¬6,000.
2. Dividends of ‚¬25,000 were declared and paid.
3. During the year, equipment was sold for ‚¬12,000 cash. This equipment cost ‚¬15,000 originally and had accumulated depreciation of ‚¬3,000 at the time of sale.
4. Additional equipment was purchased for ‚¬7,000 cash.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cash flow.

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ROCASTLE plc Comparative Statements of Financial Position December 31 Assets 2017 2016 70,000 Equipment Accumulated depreciation- 78,000 (27,000) 43,000 45,000 25,000 18,000 131,000 equipment Inventory Accounts receivable Cash (24,000)54,000 25,000 14,000 33,000 126,000 Total Equity and Liabilities Share capital-ordinary Retained earnings Bonds payable Accounts payable Income taxes payabl 25,000 31,000 20,000 31,000 24,000 131,000 25,000 28,000 10,000 43,000 20,000 126,000 Total