Can you please help explain how to do this (12-8A) for me! Im so confused! Thank you so much

provided XLS $305,000 Prepare a statement of cash od, and ws indirect me compute cash-based ratios (LO 4, 5), AP a) Net cash provided-oper act. $38,500 Prepare a statement of cash flows direct method, and compute cash-based ratios (LO 5, 6), AP XLS Presented below are the financial statements of Kurtzel P12-7A mpany. KURTZEL COMPANY Comparative Balance Sheets December 31 Assets 2014 2013 Cash 35,000 20,000 Accounts receivable 20,000 Inventory 28,000 20.000 Property, plant, and equipment 60,000 78,000 (32,000) Accumulated depreciation 24,000 Total $111,000 $108,000 Liabilities and Stockholders Equity 19,000 Accounts payable 15,000 Income taxes payable 7,000 8,000 Bonds payable 17,000 33,000 Common stock 18,000 14,000 Retained earnings 50,000 38,000 $111,000 Total $108,000 KURTZEL COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 32,000 Net income Additional data: l. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale Instructions (a) Prepare a statement of cash flows using the indirect method. (b) Compute these cash-based measures: (1) Current cash debt coverage. (2) Cash debt coverage. (3) Free cash flow. P12-8A Data for Kurtzel company are presented in P12-7A. Further analysis reveals the following I. Accounts payable pertain to merchandise All operating expenses except for depreciation were paid in cash 3. All depreciation expense is in the selling expense category 4. All sales and purchases are on account