P12-7A

XLS P12-7A Presented below are the financial statements of Warner Company. Net cash provided $305,000 Prepare a statement of cash flows-indirect method, and compute free cash flow WARNER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable 2017 2016 35,000 20,000 28,000 60,000 (32,000) 20,000 14,000 20,000 78,000 (24,000) C CInventory XLS Property, plant, and equipment Accumulated depreciation Total $111,000 108,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 15,000 $19,000 7,000 17,000 18,000 50,000 $111,000 8,000 33,000 14,000 38,000 $108,000 WARNER COMPANY Income Statement For the Year Ended December 31, 2017 $242,000 175,000 67,000 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $18,000 6,000 24,000 43,000 40,000 8,000 $ 32,000