The following are the financial statements of Nosker Company.

NOSKER COMPANY
Income Statement
For the Year Ended December 31, 2019
Sales revenue.....................................$242,000
Cost of goods sold................................175,000
Gross profit..........................................67,000
Operating expenses.................................24,000
Income from operations...........................43,000
Interest expense......................................3,000
Income before income taxes......................40,000
Income tax expense.................................8,000
Net income.......................................$ 32,000
Additional data:
1. Dividends declared and paid were $20,000.
2. During the year, equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had a book value of $8,500 at the time of sale.
3. All depreciation expense, $14,500, is in the operating expenses.
4. All sales and purchases are on account.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cash flow.

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NOSKER COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment 2019 38,000 30,000 27,000 60,000 (29,000) 2018 20,000 14,000 20,000 78,000 (24,000) Total $126,000 $108,000 Liabilities and Stockholders Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings S 24,000 7,000 27,000 18,000 50,000 $126,000 15,000 8,000 33,000 14,000 38,000 $108,000 Total