The comparative statements of financial position for Marwa Ltd$.$ at December $31,2024$ and $2023,$ are presented below:

Comparative Statements of Financial Position

As at December $31$

$20242023$

Cash $ $18,000$ $ $64,500$

Accounts receivable $43,00028,000$

Merchandise inventory $18,00025,500$

Prepaid expenses $12,00013,000$

Property, plant, and equipment, net $1,070,000654,000$

Total assets $ $1,161,000$ $ $785,000$

Accounts payable $ $31,500$ $ $27,500$

Income tax payable $14,00022,000$

Notes payable, due Nov. $1,202530,50060,500$

Share capital $188,000158,000$

Retained earnings $897,000517,000$

Total liabilities and shareholders$$ equity $ $1,161,000$ $ $785,000$

The statement of earnings for $2024$ showed the following information:

Sales $ $3,600,000$

Gross profit $2,100,000$

Operating expenses $($includes depreciation of $$61,000)1,000,000$

Interest expense $55,000$

Income tax expense $200,000$

As well, property, plant, and equipment were acquired for $$515,000$ cash during $2024.$ Also during $2024,$ property, plant, and equipment were sold at their carrying amount in exchange for cash.

Required:

$1.$ Prepare a complete statement of cash flows for Marwa Ltd$.$ for the year $2024.$ Use the indirect method for the operating section.

$2.$ Compute: a$)$ Cash collected from customers in $2024$ and b$)$ Cash paid to suppliers of merchandise inventory in $2024$

$3.$ Calculate a$)$ the Quality of Earnings Ratio and b$)$ Free cash flow