Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 17.50 90.00 142.50 250.00 291.00 61.60 229.40 $479.40 $ 34.00 83.00 131.20 248.20 234.00 46.20 187.80 $436.00 $ 85.50 198.00 195.90 $479.40 $ 66.00 151.00 219.00 $436.00 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income $1,850.00 1,110.00 740.00 720.00 $ 20.00 This year Carmono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. The company did not repurchase any of its own stock this year. Required: 1. Using the indirect method, prepare a statement of cash flows for this year. 2. Compute Carmono's free cash flow for this year. The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 32 D $36 I $ 82 D $ 31 I $ 33 D $ 575 I $ 118 I Liabilities and Stockholders' Equity Accounts Accounts payable $ 98 1 Accrued liabilities $ 36 D Income taxes payable $ 41 I Bonds payable $ 300 I Common stock $ 144 D Retained earnings $ 118 I D = Decrease; I = Increase. Long-term investments that cost the company $33 were sold during the year for $70 and land that cost $69 was sold for $36. In addition, the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: $1,380 614 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income 148 The company's beginning cash balance was $152 and its ending balance was $120. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year