please answer question p14-8B

Homework Problems: Set 8 689 Prepare of flowwwww computer case ISO 3,4 P1478 Presented below are the final statements of Molina Company MOLINA COMPANY Compete Balence Sheets December 31 2005 $ 2.000 Ao receivable 23,000 Merchandise eventory 41.000 Property, plant, and equipment $70,000 $78.000 Les Accumolatod depreciation 67,000) 43.000 (24.000) Total $135,000 2007 $ 33.000 14.000 34.000 $125.000 Equity $ 40,000 Labdies and Stockho Accounts payable Income taxes payable Boods payable Contmon stock Retained earnings 20,000 $31.000 26.000 20,000 25.000 33.000 $135.000 10,000 25.000 28.000 $126.000 Toal MOLINA COMPANY Income Statement For the Year Ended December 31, 2008 Sales $286.000 194,000 92,000 $28,000 9.000 Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Istore expense Income before income taxes Income tax expense Net Income 37,000 55.000 7.000 48,000 10.000 $30.000 Additional data: XDividends of the wore declared and pold 2. During the year equipment was sold for $10,000 cash. This equipment cost $13,000 originely and had book on the All depreciation expenan, 560 ls in the selling expense category 4 All sales and purchases are of account. Additional equipment was purchased for $5,000 cash. Instructions (a) Drapers fatement of cash flows using the indirect method. b) Compute free cash flow. *P1608 Dube for Molina Company are presented in P34-7B. Purther Analysis reveals the following L Accounts payable pertains to merchandise creditors 2. All operating expensostrept for depreciation we paid in cush Instructions 4) Preparatement of flows using the direct method. 2) Computo free collow Cash from operations $13,000 per Rower m et od and (SO 4.6) O Cash from operation $13.000