E17-5BVox Corporation's comparative balance sheets are presented below.

VOX CORPORATION

Comparative Balance Sheets

December 31

Assets20172016

Cash$19,300$10,000

Accounts receivable21,20023,000

Land20,00026,000

Building70,00070,000

Accumulated depreciation(15,000)(10,000)

Total$115,500$119,000

Liabilities and Stockholders' Equity

Accounts payable$17,370$30,000

Common stock ($1 par)75,00069,000

Retained earnings23,13020,000

Total$115,500$119,000

Additional information:

1. Net income was $27,630. Dividends declared and paid were $24,500.

2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $3,900.

Instructions

(a) Prepare a statement of cash flows for 2017 using the indirect method.

(b) Compute free cash flow.