Problem 3 (15 points). Shown below are comparative balance sheets for Marzano Company MARZANO COMPANY Comparative Balance Sheets December 31 Assets 2017 Cash $ 63.000 Accounts receivable 88,000 Inventory 167,000 Land 80.000 Equipment 265,000 Accumulated depreciation-equipment (66.000) Total 5597.000 Liabilities and Stockholders' Equity 2017 Accounts payable $ 34,000 Bonds payable 150,000 Common stock (51 par) 221,000 Retained earnings 192.000 Total $597.000 2016 $ 22,000 76,000 189.000 100,000 200,000 _(32.000 5555.000 2016 $ 43,000 200.000 174,000 138.000 $555.000 Additional information: 1. Net income for 2017 was $106.000 2. Depreciation expense was $24,000. 3. Cash dividends of $39.000 were declared and paid 4. Bonds payable amounting to $40.000 were redeemed for cash $40,000. 5. Common stock was issued for $37.000 cash. 6 No couinment was sold durinn 2017 DOLL 5 7 e Accounts payable Bonds payable Common stock (51 par) Retained earnings Total $ 34,000 150.000 221,000 192.000 5597.000 $ 43,000 200,000 174,000 138.000 5555.000 Additional information: 1. Net income for 2017 was $106,000. 2. Depreciation expense was $24.000 3. Cash dividends of $39.000 were declared and paid. 4. Bonds payable amounting to $40.000 were redeemed for cash $40,000 5. Common stock was issued for $37.000 cash. 6. No equipment was sold during 2017 7. Land was sold for its book value. Required: prepare cash flow statement for 2017 and compute Free cash flow. Show your answer in a good form; additional points will be given for neat presentation of the statement