Zielinski Corporation issued the following statement of cash flows for 2014.

(a) Compute free cash flow for Zielinski Corporation.
(b) Explain why free cash flow often provides better information than €œNet cash provided by operatingactivities.€

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Zielinski Corporation Statement of Cash Flows-Indirect Method For the Year Ended December 31, 2014 Cash flows from operating activities $59,000 Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense Decrease in accounts receivable Loss on disposal of plant assets Increase in inventory Decrease in accounts payable $9,100 8,500 3,300 (5,000) (2,500) 13,400 72,400 Net cash provided by operating activities Cash flows from investing activities Sale of investments Purchase of equipment 3,100 (26,000) Net cash used by investing activities (22,900) Cash flows from financing activities Issuance of stock Payment on long-term note payable Payment for dividends 20,000 (10,000) (18,000) Net cash used by financing activities (8,000) 41,500 13,000 $ 54,500 cash Net increase in Cash at beginning of year Cash at end of year