The following are the financial statements of Nosker Company.

NOSKER COMPANY Comparative Balance Sheets December 31
Assets		2017			2016
Cash		$37,700			$20,000
Accounts receivable		32,300			18,300
Inventory		30,200			20,200
Equipment		59,700			77,400
Accumulated depreciationequipment		(29,400	)		(23,500	)
Total		$130,500			$112,400
Liabilities and Stockholders Equity
Accounts payable		$28,100			$ 16,900
Income taxes payable		7,500			8,400
Bonds payable		26,900			32,400
Common stock		17,600			14,000
Retained earnings		50,400			40,700
Total		$130,500			$112,400

NOSKER COMPANY Income Statement For the Year Ended December 31, 2017
Sales revenue		$242,600
Cost of goods sold		175,300
Gross profit		67,300
Operating expenses		24,900
Income from operations		42,400
Interest expense		3,100
Income before income taxes		39,300
Income tax expense		7,000
Net income		$32,300

Additional data:

1.		Dividends declared and paid were $22,600.
2.		During the year equipment was sold for $9,600 cash. This equipment cost $17,700 originally and had a book value of $9,600 at the time of sale.
3.		All depreciation expense, $14,000, is in the operating expenses.
4.		All sales and purchases are on account.

Instructions

1. Prepare a statement of cash flows using the indirect method.

2. Compute free cash flow.