P13-7A Prepare a statement of cash flows - indirect method, and compute free cash flow.
	NOSKER COMPANY
	Comparative Balance Sheet
	December 31
		2017		2016
	Assets
	Cash	$38,000		$20,000
	Accounts Receivable	30,000		14,000
	Inventory	27,000		20,000
	Equipment	60,000		78,000
	Accumulated depreciation--equipment	(29,000)		(24,000)
	Total	$126,000		$108,000
	Liabilities and Stockholders' Equity
	Accounts payable	$24,000		$15,000
	Income taxes payable	7,000		8,000
	Bonds payable	27,000		33,000
	Common stock	18,000		14,000
	Retained earnings	50,000		38,000
	Total	$126,000		$108,000
	NOSKER COMPANY
	Income Statement
	For the Year ended December 31, 2 017
	Sales revenue	$242,000
	Cost of goods sold	175,000
	Gross profit	67,000
	Operating expenses	24,000
	Income from operations	43,000
	Interest expense	3,000
	Income before income taxes	40,000
	Income tax expense	8,000
	Net income	$32,000
Additional data:
1. Dividends declared and paid were $20,000.
2. During the year equipment was sold for $11,500 cash. This equipment cost $18,000
originally and had a book value of $11,500 at the time of sale.
3. All depreciation expense, $17,500, is in the operating expenses.
4. All sales and purchases are on account.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Compute free cash flow.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

(a)	NOSKER COMPANY
	Statement of Cash Flows
	For the Year Ended December 31, 2017
	Cash flows from operating activities
	Net income		Value
	Adjustments to reconcile net income to
	net cash provided by operating activities
	Depreciation expense	Value
	Increase in accounts receivable	Value
	Increase in inventory	Value
	Increase in accounts payable	Value
	Decrease in income taxes payable	Value	?
	Net cash provided by operating activities		?
	Cash flows from investing activities
	Sale of equipment	Value
	Net cash provided by investing activities		Value
	Cash flows from financing activities
	Issuance of common stock	Value
	Redemption of bonds	Value
	Payment of dividends	Value
	Net cash used by financing activities		?
	Net increase in cash		?
	Cash at beginning of period		Value
	Cash at end of period		?
(b)	Free Cash Flow:
	Net cash provided by operating activities		Value
	Less: Capital expenditures	Value
	Cash dividends	Value
			?
			?