Below Is a Condensed Version of the Comparative Balance Sheets

Below is a condensed version of the comparative balance sheets for Stiller Corporation for 2011 and 2012:
$\begin{array}{l|l|l|}\hline&2012 &20111\\\hline \text { Cash } &\$ 157,000&\$78,000 \\\hline \text { Accounts Receivable } & 180,000 &185,000 \\\hline \text { Investments } &52,000 &74,000 \\\hline \text { Equipment } &298,000 &240,000 \\\hline \text { Less Accumulated depreciation } &(106,000)&(89,000) \\\hline \text { Curent liabilities } &134,000&151,000 \\\hline \text { CommonStock } &160,000&160,000 \\\hline \text { RetainedEarnings } &287,000&177,000 \\\hline\end{array}$

Additional information:
Investments were sold at a loss (not extraordinary) of $7,000; no equipment was sold; cash dividends paid were $50,000; and net income was $160,000.
Required:
(a) Prepare a statement of cash flows for 2012 for Stiller Corporation.
(b) Calculate the company's free cash flow.

Correct Answer:

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