P17-5A Prepare a cash flow statement-indirect method-and calculate free cash flow. (LO 2, 4) AP The following are the financial statements of Gil Company. GIL COMPANY Balance Sheet December 31 Assets 2017 2016 Cash $ $ 38,000 20,000 Accounts receivable 30,000 14,000 Inventory 27,000 20,000 Equipment 60,000 78,000 Accumulated depreciation- equipment (29,000) (24,000) Total $126,00 0 $108,00 0 Liabilities and Shareholders' Equity Accounts payable LA 24,000 15,000 Income taxes payable 7,000 8,000 Notes payable 27,000 33,000 Common shares 18,000 14,000 Retained earnings 50,000 38,000 Total $126,00 $108,00 0 0 GIL COMPANY Income Statement For the Year Ended December 31, 2017 Sales $242,000