Do 17.8 just added extra info so you can have the data for it.

P17.7 (LO 2, 3), AP Presented here are the financial statements of Warner Company. Excel Warner Company Comparative Balance Sheets December 31 2022 2021 Assets Cash $ 35,000 $ 20,000 Accounts receivable 20,000 14,000 Inventory 28,000 20,000 Property, plant, and equipment 60,000 78,000 Accumulated depreciation (32,000) (24,000) Total $111,000 $108,000 Liabilities and Stockholders' Equity Accounts payable $ 19,000 $ 15,000 Income taxes payable 7.000 8,000 Bonds payable 17,000 33,000 Common stock 18.000 14,000 Retained earnings 50,000 38,000 Total $111.000 $108,000 43.000 Warner Company Income Statement For the Year Ended December 31, 2022 Sales revenue $242,000 Cost of goods sold 175,000 Gross profit 67,000 Selling expenses $18,000 Administrative expenses 6,000 24,000 Income from operations Interest expense 3,000 Income before income taxes 40,000 Income tax expense 8,000 Net income $ 32,000 Additional data: 1. Depreciation expense was $17.500. 2. Dividends declared and paid were $20,000. 3. During the year, equipment was sold for $8,500 cash. This equipment originally coat $18,000 and had accumulated depreciation of $9,500 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. Instructions a. Prepare a statement of cash flows using the indirect method. a. Net cash provided-oper. act. $38,500 b. Compute tree cash flow. a *P17.8 (LO.3. 4), AP Data for Warner Company are presented in P17.7. Further analysis reveals the following 1. Accounts payable pertain to merchandise suppliers. 2. All operating expenses except for depreciation were paid in cash. 3. All depreciation expense is in the selling expense category. 4. All sales and inventory purchases are on account Instructions a. Prepare a statement of cash flows for Warner Company using the direct method. b. Compute free cash flow. a. Net cash provided oper. act. $38,500