E14-7 Scully Corporation’s comparative balance sheets are presented below.

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E14-7 Scully Corporation’s comparative balance sheets are presented below.
SCULLY CORPORATION
Comparative Balance Sheets

Scully Corporation
Comparative Balance Sheets
				2008	2007
Cash				14,300	10,700
Accounts receivable				21,200	23,400
Land				20,000	26,000
Buildings				70,000	70,000
Accumulated depreciation - buildings				(15,000)	(10,000)
Total				110,500	120,100
Accounts payable				12,370	31,100
Common stock				75,000	69,000
Retained earnings				23,130	20,000
Total				110,500	120,100

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 2008 using the indirect method.
(b) Compute free cash flow.