Instructions 1. Prepare a statement of cash flows using the indirect method. (Show full the calculation if there is any) 2. Determine free cash flow (Show full equation)

Condensed financial data of Minnie Hooper Company are shown below. MINNIE HOOPER COMPANY Comparative Balance Sheets December 31 Assets 2017 Cash $ 93,600 Accounts receivable 63,200 Inventory 124,500 Investments 79,500 Plant assets 318,000 Accumulated depreciation (44,000) Total $634,800 Liabilities and Stockholders' Equity Accounts payable $ 56,600 Accrued expenses payable 15,100 Bonds payable 140,000 Common stock 250,000 Retained earnings 173,100 Total $634,800 2016 $ 33,400 37,000 102,650 107,000 205,000 (40,000) $445,050 $ 48,280 18,830 70,000 200,000 107,940 $445,050 $297,500 MINNIE HOOPER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue Less: Cost of goods sold $99,460 Operating expenses, excluding depreciation expense 19,670 Depreciation expense 25,000 Loss on disposal of plant assets 5,000 Income taxes 37,270 Interest expense 2,940 Net income 189,340 $108,160 Additional information: 1. New plant assets costing $149,000 were purchased for cash during the year. 2. Investments were sold at cost. 3. Plant assets costing $36,000 were sold for $10,000, resulting in a loss of $5,000. 4. A cash dividend of $43,000 were declared and paid during the year