Billy's Corporation's comparative balance sheet information is presented below:

	Billy's Corpration
	Comparative Balance Sheets
	December 31
	($000)
	2017	2016
Cash	$15,000	$10,000
Acc. Receivable	85,000	58,000
Investments	10,000	53,000
Land	50,000	-0-
Equipment	335,000	215,000
Accumulated Dep.	(20,000)	(40,000)
Total	$475,000	$296,000
Accrued Expenses Payable	$40,000	$22,000
Notes payable (due 2019)	75,000	-0-
Bonds Payable (due 2023)	50,000	-0-
Common Stock, $1 Par	254,000	254,000
Retained Earnings	56,000	20,000
Total	$475,000	$296,000

Additional Information::

1. Net income was $46,000. Dividends declared and paid were $???

2. Equipment which cost $60,000 and had a $12,000 book value, was SOLD for $8,000 cash.

3. Investments held at cost of $43,000 was sold for $34,000 cash.

4. Bonds was issued for face value, $???, to acquired Land to be used for a new parking lot.

REQUIRED

Write a memo to Jacob Baxtor, the Controller for Billy's Corporation, a new business ending its third year of operation. You are Mr. Baxtor's personal assistant and have been asked to prepare a statement of cash flows using the indirect method. In the memo, you are to explain the objective(s) of the statement, what the statement is really revealing to readers, and what is "free cash flow" and what it means. Does Billy's Corp. have any "free cash flow"? Explain