Presented on the next page are the financial statements of Weller Company.

Additional data:1. Dividends declared and paid were $25,000.2. 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(a) Prepare a statement of cash flows using the indirect method.(b) Compute free cashflow.

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WELLER COMPANY Comparative Balance Sheets December 31 2010 2009 Assets $ 35,000 $ 20,000 14,000 Cash Accounts receivable 33,000 Merchandise inventory Property, plant, and equipment Accumulated depreciation 27,000 20,000 60,000 78,000 (29,000) (24,000) $126,000 $108,000 Total Liabilities and Stockholders' Equity $ 15,000 $ 29,000 7,000 Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 8,000 33,000 14,000 38,000 27,000 18,000 45,000 $126,000 $108,000 Total WELLER COMPANY Income Statement For the Year Ended December 31, 2010 $242,000 Sales Cost of goods sold 175,000 Gross profit Operating expenses 67,000 24,000 Income from operations Interest expense 43,000 3,000 Income before income taxes 40,000 8,000 $ 32,000 Income tax expense Net income