Condensed financial data of Wanwright Company are shown below. Wanwright reports under ASPE.

Additional information:
1. New plant assets costing $141,000 were purchased for cash during the year.
2. Investments were sold at cost.
3. Plant assets costing $36,000 were sold for $15,000, resulting in a gain of $5,000.
4. A cash dividend of $38,000 was declared and paid during the year.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Calculate the free cash flow.
TAKING IT FURTHER
If a company has a loss, does that mean that there has also been a net reduction in cash from operating activities? Explain.

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WANWRIGHT COMPANY Balance Sheet December 31 Accounts receivable Investments Plant assets Accumulated depreciation Liabilities and Shareholders' Accounts payable Notes payable Retained earnings 1 WANWRIGHT COMPANY Income Statement For the Year Ended December 31, 2017 Sales Gain on sale of plant assets $297,500 5,000 302,500 Less: Cost of goods sold Operating expenses Depreciation expense Income taxes Interest expense 119,460 14,670 35,500 27,270 2,940 199,840 S102,660 Total expenses Profit