P14-8A Data for Weller Company are presented in P14-7A. Further analysis reveals the

Price: $2.50


Presented below are the financial statements of Weller Company

Additional data:
1. Dividends declared and paid were $25,000.
2. During the year equipment was sold for $8,500 cash.This equipment cost $18,000 originally
and had a book value of $8,500 at the time of sale.
3. All depreciation expense, $14,500, is in the selling expense category.
4. All sales and purchases are on account.

Further analysis reveals the following.
1. Accounts payable pertain to merchandise suppliers.
2. All operating expenses except for depreciation were paid in cash.

Instructions
(a) Prepare a statement of cash flows for Weller Company using the direct method.
(b) Compute free cash flow