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.

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