Problem $5.$ Presented below are comparative Balance sheets of International Company.

INTERNATIONAL COMPANY

Comparative Balance Sheet

December $31$

Liabilities and Stockholders' Equity

Additional data:

Net income for $2017$ was $$135,000$

Depreciation expense in $2017$ was $$24,000$

New equipment was purchased at $$74,000$ for cash

Instructions:

a$)$ Prepare cash flows from operating activities using the indirect method. $(1$ point$)$

b$)$ Compute free cash flow. $(0\mathrm{.}5$ points$)$

INTERNATIONAL COMPANY

Statement of Cash Flows

For the Year Ended December $31,2017$