The Following Selected Financial Statement Information Is for Stevens Company $\quad$

The following selected financial statement information is for Stevens Company.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { December } 31$$\begin{array}{lrr}&2017&2016\\\text { Current Assets }\\\text { Cash } & \$ 86,000 & \$ 71,000 \\\text { Accounts receivable } & 24,000 & 20,000 \\\text { Merchandise inventory } & 20,000 & 27,000 \\\text { Prepaid expenses } & 10,000 & 8,000\\\\\text { Current Liabilities }\\\text { Accounts payable } & 41,000 & 44,000 \\\text { Income taxes payable } & 6,000 & 11,000\\\\\text { Other data for the Year Ended December 31, 2017}\\\text { From the income statement:}\\\text { Net income } & \$ 146,000 \\\text { Depreciation expense } & 32,000 \\\text { Loss on sale of equipment } & 9,000\\\\\text { From accounting records: }\\\text { Capital expenditures}&44,000\end{array}$
a.Using the indirect method,prepare the operating activities section of the statement of cash flows for Stevens Company for the year ended December 31,2017.
b.Calculate the following cash measures:
(1)Operating cash flow ratio (round to the nearest tenth of a percent).
(2)Capital expenditure ratio (round to the nearest tenth of a percent).
(3)Free cash flow.