prepare a statement of cash flows for 2017 using the direct method

Additional information: 1. Net income was $28,300. Dividends declared and paid were $26,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $4,300. 3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. a. a Prepare statement of cash flows and compute free cash flow. (LD 2.31 2. Strong Corporation's comparative balance sheets are presented below. STRONG CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 28,200 $ 17,700 Accounts receivable 24,200 22,300 Investments 23.000 16,000 Equipment 60,000 70,000 Accumulated depreciation equipment (14,000) (10,000) Total $ 121,400 $ 116,000 Accounts payable $ 19,600 $ 11,100 Bonds payable 10,000 30,000 Common stock 60,000 45,000 Retained earnings 31,800 29,900 Total $121,400 $ 116,000 Additional information: 1. Net income was $28,300. Dividends declared and paid were $26,400. 2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $4,300. 3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. a. a Prepare statement of cash flows and compute free cash flow. (LD 2.31 2. Strong Corporation's comparative balance sheets are presented below. STRONG CORPORATION Comparative Balance Sheets December 31 2017 2016 Cash $ 28,200 $ 17,700 Accounts receivable 24,200 22,300 Investments 23.000 16,000 Equipment 60,000 70,000 Accumulated depreciation equipment (14,000) (10,000) Total $ 121,400 $ 116,000 Accounts payable $ 19,600 $ 11,100 Bonds payable 10,000 30,000 Common stock 60,000 45,000 Retained earnings 31,800 29,900 Total $121,400 $ 116,000