E14-9 Muldur Corporation’s comparative balance sheets are presented below.

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Muldur Corporation’s comparative balance sheets are presented below.

Muldur Corporation
Comparative Balance Sheets
31-Dec
		2008	2007
Cash		15,200	17,700
Accounts receivable		25,200	22,300
Investments		20,000	16,000
Equipment		60,000	70,000
Accumulated depreciation-equipment		(14,000)	(10,000)
Total		106,400	116,000
Accounts payable		14,600	11,100
Bonds payable		10,000	30,000
Common stock		50,000	45,000
Retained earnings		31,800	29,900
Total		106,400	116,000

Additional information:

1. Net income was $18,300. Dividends declared and paid were $16,400.
2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for
$3,300.
3. All other changes in noncurrent account balances had a direct effect on cash flows, except
the change in accumulated depreciation.

Instructions
(a) Prepare a statement of cash flows for 2008 using the indirect method.
(b) Compute free cash flow.