Q1. Planner Corporation's comparative balance sheets are presented below.

PLANNER CORPORATION Comparative Balance Sheets December 31

Cash 2017 $ 21,570 2016 $ 10,700

A/R 2017 18,200 2016 23,400

Land 2017 18,000 2016 26,000

Building 2017 70,000 2016 70,000

Accumulated depreciation2017 (15,000) 2016 (10,000)

Total 2017 $112,770 2016 $120,100

Accounts payable 2017 $ 12,370 2016 $31,100

Common stock 2017 75,000 2016 69,000

Retained earnings 2017 25,400 2016 20,000

Total 2017 $112,770 2016 $120,100

Additional information: 1. Net income was $27,900. Dividends declared and paid were $22,500. 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $5,900.

Instruction (a) Prepare a statement of cash flows for 2017 using the indirect method. (b) Compute free cash flow.