Planner Corporation's Comparative Balance Sheets Are Presented Below Additional Information:
1

Planner Corporation's comparative balance sheets are presented below. $\begin{array}{c}\text { PLANNER CORPORATION }\\\text { Comparative Balance Sheets }\\\text { December 31}\\\begin{array}{lrr}&2017&2016\\\text { Cash } & \$ 21,570 & \$ 10,700 \\\text { Accounts receivable } & 18,200 & 23,400 \\\text { Land } & 18,000 & 26,000 \\\text { Building } & 70,000 & 70,000 \\\text { Accumulated depreciation } & \underline{(15,000)} & \underline{(10,000)} \\\quad \text { Total } & \underline{\$ 112,770} & \underline{\$ 120,100} \\\\\text { Accounts payable } & \$ 12,370 & \$ 31,100 \\\text { Common stock } & 75,000 & 69,000 \\\text { Retained earnings } & \underline{25,400} & \underline{20,000} \\\quad \text { Total } & \underline{\underline{\$ 112,770}} & \underline{\underline{120, 100}}\end{array}\end{array}$ Additional information:
1. Net income was $27900. Dividends declared and paid were $22500.
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 $5900.
Instruction
(a) Prepare a statement of cash flows for 2017 using the indirect method.
(b) Compute free cash flow.