Presented below are the financial statements of Nosker Company.
Additional data:
Dividends declared and paid were $20,000.
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.
All depreciation expense, $14,500, is in the operating expenses.
All sales and purchases are on account.
Instructions
Prepare a statement of cash flows using the indirect method.
Compute free cash flow.