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

Additional information: 

1. New plant assets costing $141,000 were purchased for cash during the year. 

2. Long-term 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 cash flow statement using the indirect method. 

b. Calculate free cash flow. 

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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Assets Cash Accounts receivable Inventory Long-term investments Plant assets Accumulated depreciation Total assets WANWRIGHT CORP. Balance Sheet December 31 Liabilities and Shareholders' Equity Accounts payable Salaries payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity 2024 $ 92,700 70,800 131,900 84,500 310,000 (49,500) $640,400 $ 62,700 15,100 140,000 250,000 172,600 $640,400 2023 $33,400 37,000 102,650 107,000 205,000 (40,000) $445,050 $ 48,280 18,830 70,000 200,000 107,940 $445,050