Additional information: Operating expenses (including depreciation expense) were $ 40,000 The land is sold for cash at a book value of $ 20,000 Paid cash dividends of $ 20,000 Net income for 2018 is $ 48,000 Equipment was purchased $ 95,000 in cash. As additional information, equipment for $ 22,000 with a book value of $ 12,000 was sold for cash for $ 6,000. Issued 35,000 shares of common stock with par value $ 1 in exchange for land that had a fair value of $ 35,000.

QUESTION: Based on the data above, do the following: a. Prepare a cash flow statement for the period December 31, 2018. b. Calculate free cash flow from the information provided in point a. c. Analyze the company's performance based on the information in the cash flow statement and the amount of free cash flow.

Mercurius company Comparative statement of balance sheet 31st December ASSETS 2018 2017 $ $ Cash 62.520 45.000 Account Receivable 46.000 62.000 Inventory 154.550 142.000 Prepaid expenses 18.280 21.000 Buildings 200.000 200.000 Accumulated Depreciation-Buildings -60.000 -40.000 Equipment 228.000 155.000 Accumulated Depreciation-Equipment -45.000 -35.000 Land 145.000 130.000 TOTAL $ 749,350 $ 680.000 EQUITY & LIABILITIES Accounts Payable Bonds Payable Share Capital Ordinary-par values $1 Retained Earnings TOTAL 46.350 40.000 300.000 300.000 195.000 160.000 208.000 180.000 $ 749.350 $ 680.000