Please answer instructions a. and b. for P17.7A and instructions a. and b. for P17.8A

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118,00 pare aware of cash met mered and compute free Excel P17.7A (LO 2, a) Financial Statement The following are the financial statements of Monker Company Nosker Company Comparative Balance Sheets December 31 Assets 2020 2019 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 S126.000 S108,000 Liabilities and Stockholders' Equity Accounts payable $ 24.000 S 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 S126.000 S108.000 Nosker Company Income Statement For the Year Ended December 31, 2020 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 30.000 Income tax expense 8.000 Net income $ 32.000 Additional data 1. Dividends declared and paid were $20,000 2. During the year, quipment was sold for $8.500 cash. This equipment cou 518,000 originally and had a book value of 58 500 at the time of sale. 3. All depreciation expense. $14.500, is in the operating expenses. 4. All sales and purchases are on account Problems: Set A 17-53 Instructions a. Prepare a statement of cash flows using the indirect method b. Compute free cash flow a. Cash from operating activities $31.500 Prepare a statement of cash flow- direct method, and computer free wash flow: Excel *P17.8A (LO 3,4) Financial Statement Data for Nosker Company are presented in P17.7A. Further analysis reveals the following. 1. Accounts payable pertain to merchandise suppliers 2. All operating expenses except for depreciation were paid in cash. Instructions a. Prepare a statement of cash flows for Nosker Company using the direct method. b. Compute free cash flow. a. Cash from operating activities $31,500