Exercise 14-6 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, LO14-2, LO14-3] Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 3 $ 6 Accounts receivable 22 24 Inventory 50 40 Total current assets 75 70 Property, plant, and equipment 240 200 Less accumulated depreciation 65 50 Net property, plant, and equipment 175 150 Total assets $ 250 $ 220 Liabilities and Stockholders Equity Accounts payable $ 40 $ 36 Common stock 150 145 Retained earnings 60 39 Total liabilities and stockholders equity $ 250 $ 220 For this year, the company reported net income as follows: Sales $ 275 Cost of goods sold 150 Gross margin 125 Selling and administrative expenses 90 Net income $ 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 Carmonos free cash flow for this year.