Meera Ltd.'s comparative statements of financial position are presented below.

Additional information:
1. Net income was £22,590. Dividends declared and paid were £16,500.
2. All other changes in non-current account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for £5,000.
Instructions
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Compute free cash flow.

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MEERA LTD Comparative Statements of Financial Position December 31 2017 2016 Land Buildings Accumulated depreciation-buildings Accounts receivable Cash E 20,000 70,000 (15,000) 20,800 17,660 £113,460 E 26,000 70,000 (10,000) 23,400 10,700 £120,100 Total Share capital-ordinary Retained earnings Accounts payable £ 75,000 26,090 12,370 £113,460 £ 72,000 20,000 28,100 £120,100 Total