Statement of Cash Flows

The following are the financial statements of Nosker Company.

1. Dividends declared and paid were $20,000.
2. During the year equipment wassold for $8,500 cash. This equipment coast $18,000 originally and had a book value of $8,500 is in the operating expenses
3. All depreciation expense $14,500 is in the operating expenses
4. All sales and purchasers and on account.

Instructions

1. Prepare a statement of cash flows using the indirect method.
2. Compute free cash flow

Solution