P13-7A Presented below are the financial statements of Rajesh Company Ltd. RAJESH COMPANY LTD. Comparative Statements of Financial Position December 31 Assets 2017 Equipment 60,000 2016 78,000 Accumulated depreciation-equipment (29,000) (24,000) Inventory 30,000 20,000 Accounts receivable 33,000 14,000 Cash 37,000 20,000 Total 131,000 108,000 Equity and Liabilities Share capital-ordinary 18,000 14,000 Retained earnings 50,000 38,000 ET A Bonds payable 27,000 33,000 Accounts payable 29,000 15,000 Income taxes payable 7,000 8,000 Total 131,000 108,000 RAJESH COMPANY LTD. Income Statement For the Year Ended December 31, 2017 Additional data: Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 1. Depreciation expense is 13,300. 2. Dividends declared and paid were 20,000. 242,000 175,000 67,000 24,000 43,000 artend 3,000 40,000 8,000 32,000 3. During the year, equipment was sold for 9,700 cash. This equipment cost 18,000 originally and had accumulated depreciation of 8,300 at the time of sale. Instructions (a) Prepare a statement of cash flows using the indirect method. ons (b) Compute free cash flow