Presented below are the financial statements of Rocastle Company.

                            

Additional data:
  1. Depreciation expense was $6,000.
  2. Dividends of $25,000 were declared and paid.
  3. During the year, equipment was sold for $12,000 cash. This equipment cost $15,000 originally and had accumulated depreciation of $3,000 at the time of sale.
  4. Additional equipment was purchased for $7,000 cash.

Instructions
  (a) Prepare a statement of cash flows using the indirect method.
  (b) Compute free cash flow.