the following selected financial statement information is for Stevens Company

December 31 2017 2016 Changes in assets Current Assets Cash $ 86,000 $71,000 Accounts receivable 24,000 20,000 Merchandise inventory 20,000 27,000 Prepaid expenses 10,000 8,000 Current Liabilities Accounts payable 41,000 44,000

Income taxes payable 6,000 11,000 Other data for the Year Ended December 31, 2017 From the income statement: Net income $146,000 Depreciation expense 32,000 Loss on sale of equipment 9,000 From accounting records: Capital expenditures 44,000

Required: a. Using the indirect method, prepare the operating activities section of the statement of cash flows for Stevens Company for the year ended December 31, 2017. b. Calculate the following cash measures: (1) Operating cash flow ratio (round to the nearest tenth of a percent). (2) Capital expenditure ratio (round to the nearest tenth of a percent). (3) Free cash flow