Shown below are the financial statements of Filmore Company.

Additional data:
1. Depreciation expense was $6,000.
2. Dividends of $28,000 were declared and paid.
3. During the year, equipment was sold for $10,000 cash. This equipment cost $13,000 originally and had accumulated depreciation of $3,000 at the time of sale.
4. Additional equipment was purchased for $8,000 cash.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute these cash-based measures:
(1) Current cash debt coverage.
(2) Cash debt coverage.
(3) Free cashflow.

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FILMORE COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Property, plant, and equipment 73,000 Less: Accumulated depreciation (27,000) Total 2014 25,000 23,000 41,000 2013 33,000 14,000 25,000 78,000 (24,000) 46,000 54,000 $135,000 S126,000 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total 23,000 26,000 20,000 25,000 41,000 $135,000 46,000 23,000 10,000 25,000 22,000 $126,000 FILMORE COMPANY Income Statement For the Year Ended December 31, 2014 Sales revenuc Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $295,000 194,000 101,000 $28,000 9,000 37,000 64,000 3,000 61,000 14,000 47,000