ROCASTLE COMPANY Comparative Balance Sheets December 31 ROCASTLE COMPANY Income Statement For the Year Ended December 31, 2012 Additional data: 1. Dividends of $23,000 were declared and paid. 2. During the year equipment was sold for $10,000 cash. This equipment cost $15,000 originally and had a book value of $10,000 at the time of sale. 3. All depreciation expense, $8,000, is in the operating expenses. (O) 4. All sales and purchases are on account. 5. Additional equipment was purchased for $7,000 cash. Instructions (a) Prepare a statement of cash flows using the indirect method. (b) Compute free cash flow