Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 12.00 $ 23.00 Accounts receivable 68.00 61.00 Inventory 115.00 102.60 Total current assets 195.00 186.60 Property, plant, and equipment 258.00 212.00 Less accumulated depreciation 52.80 39.60 Net property, plant, and equipment 205.20 172.40 Total assets $ 400.20 $ 359.00 Liabilities and Stockholders Equity Accounts payable $ 69.00 $ 55.00 Common stock 154.00 118.00 Retained earnings 177.20 186.00 Total liabilities and stockholders equity $ 400.20 $ 359.00 For this year, the company reported net income as follows: Sales $ 1,300.00 Cost of goods sold 780.00 Gross margin 520.00 Selling and administrative expenses 500.00 Net income $ 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. (List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to 2 decimal places.)

carmono company

statement of cash flows- indirect method

for this year ended december 31

operating activities:
net income
adjustments to convert net income to a cash basis:
depreciation
increase in accounts recievable
increase in accounts payable
net cash provided by operating activities
investing activities
increase in plant and equipment
net cash used in investing activities
financing activities
increase in common stock
cash dividends
net cash provided by financing activities
net decrease in cash
beg. cash and cash equivalents
ending cash and cash equivalents
empty (all columns below)

2. Compute Carmonos free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.)

Free cash flow