Cassandra Corporation€™s comparative balance sheets are presented below.

Additional information:
1. Net income was $18,300. Dividends declared and paid were $14,600.
2. Equipment which cost $10,000 and had accumulated depreciation of $1,800 was sold for $3,500.
3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.
Instructions
(a) Prepare a statement of cash flows for 2014 using the indirect method.
(b) Compute free cashflow.

Cassandra Corporation Comparative Balance Sheets December 31 2014 2013 Cash Accounts receivable Investments Equipment Accumulated depreciation-equipment $17,000 25,200 20,000 60,000 (14,000) $108,200 $ 17,700 22,300 16,000 70,000 (10,000) $116,000 Total Accounts payable Bonds payable Common stock Retained earnings 14,600 10,000 50,000 33,600 11,100 30,000 45,000 29,900 116,000 Total