Comparative financial statement data for Carmono Company follow:

For 2009, the company reported net income as follows:

Dividends of $14 were declared and paid during 2009.

Required:

1.         Using the indirect method, prepare a statement of cash flows for 2009.

2.         Compute Carmono’s free cash flow for 2009.

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2009| 2008 $ 3 $ 6 Cash 22 Accounts receivable 24 Inventory 50 40 240 Plant and Equipment Less accumulated 200 depreciation (65) (50) Total assets $250 $220 $40 Accounts payable $36 Common stock 150 145 Retained earnings 60 39 Total liabilities and stockholders' equity $250 $220