B) Compute free cash flow

The following are the financial statements of Nosker Company. Additional data: 1. Dividends declared and paid were $21,300. 2. During the year, equipment was sold for $8,800cash. This equipment cost $18,100 originally and had a book value of $8,800 at the time of sale. 3. All depreciation expense, $15,200, is in the operating expenses. 4. All sales and purchases are on account. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. (a) Prepare a statement of cash flows for Nosker Company using the direct method. (Show amounts that decrease cash flow with either a - sign eg. 15,000 or in parenthesis e.g. (15,000).)