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financial statement 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,

financial statement

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.

2. Compute Carmonos free cash flow for this year.

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