Miroz Corporation's Comparative Balance Sheets Are Presented Below Additional Information:
1

Essay

Miroz Corporation's comparative balance sheets are presented below. $$\begin{array} { l r r } & \begin{array} { c } \text { MIROZ CORPORATION } \\\text { Comparative Balance Sheets } \\\text { December 31 }\end{array} & \\& \underline{ 2017 } & \underline { 2016 } \\ \text { Cash } & \$ 18,700 & \$ 22,700 \\\text { Accounts receivable } & 24,700 & 22,300 \\\text { Investments } & 25,000 & 16,000 \\\text { Equipment } & 59,000 & 70,000 \\\text { Accumulated depreciation } & \underline { ( 14,500 ) } & \underline { ( 10,000 ) } \\\quad \text { Total } & \underline { \$ 112,900 } & \underline { \underline { \$ 121,000 } } \\\\\text { Accounts payable } & \$ 13,600 & \$ 11,100 \\\text { Bonds payable } & 6,000 & 30,000 \\\text { Common stock } & 50,000 & 45,000 \\\text { Retained earnings } & \underline { 43,300 } & \underline { 34,900 } \\\quad \text { Total } & \$ 112,900 & \$ 121,000\end{array}$$ Additional information:
1. Net income was $17700. Dividends declared and paid were $9300.
2. Equipment which cost $11000 and had accumulated depreciation of $2000 was sold for $4000.
3. All other changes in noncurrent account balances had a direct effect on cash flows except the change in accumulated depreciation.
Instruction
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Compute free cash flow.