Can someone help me better understand how to do this and why things so where they do and if calculations were done then how did you get them?

ES-188, Preparation of a Statement of Cash Flows Analysis Preparation of a Statement of Cash Flows Analysis A comparative balance sheet for Harrison Corporation is presented below. HARRISON CORPORATION BALANCE SHEETS December 31 2017 2016 Inc/Dec Assets $ 36,500 41,000 90,000 130,000 (34,500) 35,500 $11,000 33,000 94,500 100,000 (21,000) 55,000 $25,500 Inc. 8,000 Inc. 4,500 Dec 30,000 Inc. 13,500 Inc. 19,500 Dec. Cash Accounts receivable Inventory Building Accumulated depreciation-building Land $272,500 $298,500 Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings $ 23,500 100,000 $ 17,000 75,000 107,000 99,500 6,500 Dec 25,000 Dec. 25,000 Inc. 32,500 Inc. 82,000 67,000 $272,500 $298,500 Total Additional information: Cash dividends of $30,000 were declared and paid. Bonds payable of $25,000 were converted to common stock Land was sold at cost and no land was purchased. Instructions (a) Prepare a statement of cash flows for 2017. (b) Compute the current ratio (current assets + current liabilities) as of December 31, 2016 and 2017 and compute free cash flow for the year 2017. (c) In light of the analysis in (b), comment on Harrison's liquidity and financial flexibility