Willingham Corporation's comparative balance sheets are presented below.

Additional information:
1. Net income was $22,630. Dividends declared and paid were $19,500.
2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,900.

Instructions
(a) Prepare a statement of cash flows for 2011 using the indirect method.
(b) Compute free cash flow.

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WILLINGHAM CORPORATION Comparative Balance Sheets December 31 2011 2010 Cash Accounts receivable Land Building Accumulated depreciation 21,200 20,000 70,000 (15,000) $110,500 14,300 10,700 23,400 26,000 70,000 (10,000) Total $120,100 Accounts payable Common stock Retained earnings $12,370 75,000 23,130 $110,500 $31,100 69,000 20,000 $120,100 Total