Question: Presented below are the financial statements of Warner Company
Additional data: 1. Depreciation expense was $17,500.
2. Dividends declared and paid were $20,000.
3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale.
Instructions: (a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cash flow.