Cassandra SA’s comparative statements of financial position are presented below.

Additional information:
1. Net income was €23,300. Dividends declared and paid were €14,600.
2. Equipment that cost €10,000 and had accumulated depreciation of €1,800 was sold for €3,500.
3. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation.

Instructions
a. Prepare a statement of cash flows for 2020 using the indirect method.
b. Compute free cash flow.

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Cassandra SA Comparative Statements of Financial Position December 31 2020 2019 € 60,000 € 70,000 Equipment Accumulated depreciation-equipment (14,000) 20,000 (10,000) 13,000 22,300 17,700 Investments Accounts receivable 25,200 Cash 17,000 €108,200 €113,000 Total € 45,000 € 50,000 Share capital-ordinary Retained earnings Bonds payable Accounts payable 33,600 24,900 30,000 10,000 14,600 13,100 €108,200 Total €113,000