Strong Corporation's comparative balance sheets are presented below.
STRONG CORPORATION Comparative Balance Sheets December 31
$$
\begin{array}{|ccc|}
\hline \text { Cash } & \$ 28,200 & \$ 17,700 \\
\text { Accounts receivable } & 24,200 & 22,300 \\
\text { Investments } & 23,000 & 16,000 \\
\text { Equipment } & 60,000 & 70,000 \\
\text { Accumulated depreciation-equipment } & (14,000) & (10,000) \\
\text { Total } & \$ 121,400 & \$ 116,000 \\
\text { Accounts payable} & \$ 19,600 & \$ 11,100\\
\text { Bonds payable} & \ 10,000& \ 30,000\\
\text { Common stock} & \ 60,000 & \ 45,000 \\
\text { Retained earnings } & \ 31,800 & \ 29,900 \\
\hline \text { Total} & \$ 121,400& \$ 116,000\\
\end{array}
$$
Additional information:
1. Net income was $$\$ 28,300$$. Dividends declared and paid were $$\$ 26,400$$.
2. Equipment that cost $$\$ 10,000$$ and had accumulated depreciation of $$\$ 1,200$$ was sold for $$\$ 4,300$$.
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 2017 using the indirect method.
(b) Compute free cash flow.