The following are the financial statements of Nosker Company.

assets 2017 2016

Cash $ 35,350 $ 19,150

Accounts receivable 32,100 19,750

Inventory 26,150 20,500

Equipment 59,150 77,600

Accumulated depreciationequipment (29,450 ) (23,750 )

Total $123,300 $113,250

Liabilities and Stockholders' Equity

Accounts payable $ 28,450 $ 16,100

Income taxes payable 7,350 8,350

Bonds payable 26,100 33,550

Common stock 18,050 14,450

Retained earnings 43,350 40,800

Total $123,300 $113,250

NOSKER COMPANY

Income Statement

For the Year Ended December 31, 2017

Sales revenue $242,950

Cost of goods sold 175,450

Gross profit 67,500

Operating expenses 23,950

Income from operations 43,550

Interest expense 2,300

Income before income taxes 41,250

Income tax expense 7,250

Net income $ 34,000

Additional data:

1. Dividends declared and paid were $31,450.

2. During the year equipment was sold for $7,900 cash. This equipment cost $18,450 originally and had accumulated depreciation of $10,550 at the time of sale.

3. All depreciation expense, $16,250, is in the operating expenses.

4. All sales and purchases are on account.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Compute free cash flow. Free Cash Flow $