P13-7A. Presented below are the nancial statements of Nosker Company.

Additional data:

Dividends declared and paid were $20,000.

During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.

All depreciation expense, $14,500, is in the operating expenses.

All sales and purchases are on account.

Instructions

Prepare a statement of cash ows using the indirect method.

Compute free cash ow.