intermediat accounting

Part B: Cash-flow statement (9 marks) Balance sheets 2016-2017 for Xenox Company, are presented below. Xenex Company Balance Sheets December 31 Assets 2016 2017 Cash S 171.000 | 65.000 AR 27.000 70,000 Inventories 85.000 66,000 Building 260,000 202,000 Equipment 189.000 230,000 Accumulated Depreciation (84,000)||(72,000) Total $648.000 5561,000 Liabilities and stockholders' equity Accounts payable S 46,000 S 69,000 Interest payable 16,000 10,000 Bonds payable 200,000 180,000 Common stock, Si par 310,000 230,000 Retained carings 76,000 72,000 Total 56-48,000 $561,000 Additional information: 1. Depreciation expense of $ 18,000. 2. Cash dividends of $ 60,000 were paid. 3. Interest of $ 5,000 was received. 4. Net income was $180,000. 5. Stocks were issued for $20,000 cash. 6. Equipment with original cost of $ 40,000 and accumulated depreciation of $30,000 was sold for $8,000 cash. 7. Building with a cost of $ 74,000 was purchased during 2012. 8. Equipment with a cost $ 70,000 was purchased by issuing stock Instructions: -- How can you explain the difference between net income and net cash? (2 marks) - Prepare the statement of cash flows for 2017 using the indirect method. (5 marks) Calculate the Free Cash-Flow (FCF) and interpret. (2 marks)