Strong Corporation’s comparative balance sheets are presented below. LO11 2017 2016 Cash $ 28,200 $ 17,700 Accounts receivable 24,200 22,300 Investments 23,000 16,000 Equipment 60,000 70,000 Accumulated depreciation—equipment (14,000) (10,000)
Total $ 121,400 $ 116,000 Accounts payable $ 19,600 $ 11,100 Bonds payable 10,000 30,000 Common stock 60,000 45,000 Retained earnings 31,800 29,900 Total $ 121,400 $ 116,000 STRONG CORPORATION Comparative Balance Sheets December 31 Additional information:
1- Net income was $28,300. Dividends declared and paid were $26,400.
2- Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $4,300.
3- All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.
INSTRUCTIONS

(a) Prepare a statement of cash fl ows for 2017 using the indirect method.

(b) Compute free cash fl ow.