Exercise 13-6 Prepare a Statement of Cash Flows; Free Cash Flow (LO13-1, LO13-2, LO13-3) Comparative financial statement data for Carmono Company follow This Year Last Year $ 6 24 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 3 175 $ 250 TI 40 70 200 50 150 $ 220 U AN s 40 150 60 $36 145 S 250 $ 220 Return to For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income $ 275 150 125 90 s 35 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. & Answer is not complete. Complete this question by entering your answers in the tabs below. IS 35 Carmono Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Net income Adjustments to convert sales to a cash basis: Depreciation $ Decrease in accounts receivable Increase in inventory Increase in accounts payable 15 >>>>>> 2 (10) 4 11 46 Net cash provided by operating activities Investing activities Cash dividends Net increase in cash and cash equivalents Net cash provided by investing activities (14) 5 X (9) 7 Cash dividends Net increase in cash and cash equivalents Net cash provided by investing activities Financing activities: (14) 5% (9) Decrease in plant and equipment X (40) Net cash provided by investing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents (40) (3) 6 S 3 Required 2 > 2. Compute Carmono's tree cash flow for this year Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign.). Free cash flow 6