Using the information below, calculate the free cash flow.

Net Cash Provided by Operating Activities: $38,000

Net Cash Provided by Investing Activities: $12,000

Net Cash Used by Financing Activities: $25,000

Increase in Accounts Receivable: $5,000

Decrease in Inventory: $10,000

Net Income: $19,000

Issuance of Common Stock: $7,000

Payment of Cash Dividends: $12,000

Issuance of Bonds Payable: $20,000

Purchase of Equipment: $10,000

Depreciation Expense: $2,500

b) Prepare the journal entries for McIntosh Company for the following transactions.

January 15, 2020: McIntosh Company acquires 35% of the 250,000 shares of common stock of Price Company at a cost of $6 per share.

March 10, 2020: Price Company declares and pays a cash dividend of $40,000.

December 30, 2020: Price Company reports a net income of $470,000 for the year.

June 17, 2021: McIntosh Company sells 40,000 shares for a total of $200,000.