The balance sheet data of Wheels n Tires, Inc. at the end of 2014 and 2013 follow. Use the following information to prepare a statement of cash flow for 2014.

2014 2013

Cash $ 7,500 $ 10,000

Accounts receivable 82,000 87,500

Merchandise inventory 86,000 81,000

Prepaid expenses 9,000 12,000

Equipment 170,000 145,000

Accumulated depreciationequipment (45,000) (36,000)

Land 30,000 50,000

Total assets $339,500 $349,500

Accounts payable $ 44,500 $ 58,000

Accrued expenses 11,000 9,000

Long-term Bonds 20,000 50,000

Common stock, $1 par 181,000 160,000

Retained earnings 83,000 72,500

Total liabilities and shareholdersequity $339,500 $349,500

Additional information:

Equipment was purchased for $21,000 in exchange for common stock, par $21,000, during the year; all other equipment purchased was for cash. The firm did not sell any PPE in 2014. Land was sold for $31,500. Cash dividends of $7,000 were declared and paid during the year.

1) Calculate the net income in 2014.

2) Calculate the depreciation expense in 2014.

3) Calculate the gain/loss on the sale of land, if any.

4) Calculate the value of the equipment that was purchased by cash.

5) Prepare OCF using the indirect method.

6) Prepare ICF using the direct method.

7) Prepare FCF using the direct method.