Question & Answer: PROBLEM 3 (30 Points) its annual financial statements at 30 June 2017. The balance sheets and income statements are summarized below Balanc…..

PROBLEM 3 (30 Points) its annual financial statements at 30 June 2017. The balance sheets and income statements are summarized below Balance Sheet at 30 June 2017 atement of Cash Flows. The completed comparative & 2016 Cash 2017 s 42,000 S 80,000 s 60,000 S 8,000 $107,000 2016 S 22,000 S 81,000 S 23,000 S 10,000 S119,000 Accounts Receivable (net) Inventory Prepaid Insurance Land Property and Equipment S 54,000 79,000 ($21,000) Accumulated Depreciation ($15,000) s 37,000 $ 20,000 S 12,000 S 6,000 S 92,000 Accounts Payable $ 23,000 S 36,000 s 14,000 S 9,000 S 98,000 Wages Payable Interest Payable Income Tax Payable Long term Notes Payable Common Stock Retained Earnings $131,000 S 44,000 $116,000 S 11,000 Other Information: 1. Land was sold for S8,100. 3. Common stock was issued for cash. 4. Net income for 2017 was $38,000 and cash dividends paid were $5,000. 2. Equipment was purchased for cash. 4. There were no disposals of equipment. EQUIRED: a. Prepare a Statement of Cash Flows in good form using the indirect method b. Compute the Free Cash Flow