Barnish Corporation issued the following statement of cash flows for 2012.

(a) Compute free cash flow for Barnish Corporation.

(b) Explain why free cash flow often provides better information than "Net cash provided by operating activities."

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BARNISH CORPORATION Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2012 Cash flows from operating activities Net income $59,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Increase in inventory Decrease in accounts payable Loss on sale of equipment $ 9,100 9,500 (5,000) (2,200) 3,300 14,700 Net cash provided by operating activities 73,700 Cash flows from investing activities Sale of investments Purchase of equipment 3,100 (24,200) Net cash used by investing activities (21,100) Cash flows from financing activities Issuance of stock Payment on long-term note payable Payment for dividends 20,000 (10,000) (13,000) Net cash used by financing activities (3,000) Net increase in cash Cash at beginning of year Cash at end of year 49,600 13,000 $62,600