Presented below are the financial statements of Weller Company. WELLER COMPANY Comparative Balance Sheets December 31 Assets 2008 2007 Cash $ 35,000 $ 20,000 Accounts receivable 33,000 14,000 Merchandise inventory 27,000 20,000 Property, Plant and Equipment 60,000 78,000 Accumulated depreciation (29,000) (24,000) Total $126,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $ 29,000 $ 15,000 Income taxes payable 7,000 8,000 Bonds payable 27,000 33,000 Common stock 18,000 14,000 Retained earnings 45,000 38,000 Total $126,000 $108,000 WELLER COMPANY Income Statement For the Year Ended December 31, 2008 Sales $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations 43,000 Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $ 32,000 Additional data: Dividends declared and paid were $25,000. 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 selling expense category. All sales and purchases are on account. Prepare a statement of cash flows using the indirect method. (List multiple entries with a positive cash flow first and then the negative cash flow. List amounts from largest to smallest eg 10, 5, 3, 2. If amount decreases cash flow, use either a negative sign preceding the number eg -45 or parentheses eg (45).) WELLER COMPANY Statement of Cash Flows For the Year Ended December 31, 2008 Cash flows from operating activities Sale of equipmentIssuance of common stockIncrease in accounts payableDecrease in income taxes payablePayment of dividendsNet incomeRedemption of bondsDepreciation expenseIncrease in accounts receivableIncrease in merchandise inventory $ Adjustments to reconcile net income to net cash provided by operating activities Depreciation expensePayment of dividendsRedemption of bondsNet incomeIncrease in accounts receivableIncrease in merchandise inventorySale of equipmentIncrease in accounts payableDecrease in income taxes payableIssuance of common stock $ Net incomeIncrease in merchandise inventoryDecrease in income taxes payableRedemption of bondsSale of equipmentIssuance of common stockPayment of dividendsIncrease in accounts payableDepreciation expenseIncrease in accounts receivable Redemption of bondsIncrease in accounts receivableIncrease in merchandise inventorySale of equipmentNet incomeDepreciation expenseIncrease in accounts payableDecrease in income taxes payableIssuance of common stockPayment of dividends Issuance of common stockPayment of dividendsSale of equipmentRedemption of bondsIncrease in merchandise inventoryNet incomeDepreciation expenseIncrease in accounts payableIncrease in accounts receivableDecrease in income taxes payable Decrease in income taxes payableNet incomeSale of equipmentIssuance of common stockRedemption of bondsPayment of dividendsIncrease in accounts payableDepreciation expenseIncrease in accounts receivableIncrease in merchandise inventory Net cash provided by operating activities Cash flows from investing activities Increase in accounts payableNet incomeSale of equipmentPayment of dividendsRedemption of bondsDecrease in income taxes payableDepreciation expenseIncrease in merchandise inventoryIssuance of common stockIncrease in accounts receivable Cash flows from financing activities Increase in accounts payableRedemption of bondsIssuance of common stockIncrease in accounts receivablePayment of dividendsSale of equipmentIncrease in merchandise inventoryNet incomeDecrease in income taxes payableDepreciation expense Increase in merchandise inventoryNet incomeIssuance of common stockSale of equipmentRedemption of bondsDecrease in income taxes payablePayment of dividendsDepreciation expenseIncrease in accounts receivableIncrease in accounts payable Depreciation expenseIncrease in accounts receivableSale of equipmentDecrease in income taxes payableIncrease in merchandise inventoryIncrease in accounts payableIssuance of common stockNet incomePayment of dividendsRedemption of bonds Net cash used by financing activities Net decreaseincrease in cash Cash at beginning of period Cash at end of period $ Compute free cash flow. $ Click here if you would like to Show Work for this