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 $ $21,000$ $ $67,500$

Accounts receivable $46,00031,000$

Merchandise inventory $21,00028,500$

Prepaid expenses $15,00016,000$

Property, plant, and equipment, net $1,073,000657,000$

Total assets $ $1,176,000$ $ $800,000$

Accounts payable $ $34,500$ $ $30,500$

Income tax payable $17,00025,000$

Notes payable, due Nov. $1,202533,50063,500$

Share capital $191,000161,000$

Retained earnings $900,000520,000$

Total liabilities and shareholders$$ equity $ $1,176,000$ $ $800,000$

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

Sales $ $4,200,000$

Gross profit $2,350,000$

Operating expenses $($includes depreciation of $$67,000)1,150,000$

Interest expense $70,000$

Income tax expense $215,000$

As well, property, plant, and equipment were acquired for $$530,000$ 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. $($Negative answers should be indicated by a minus sign.$)$

$3.$ Calculate $($a$)$ the quality of earnings ratio and $($b$)$ free cash flow. $($Round "Quality of earnings ratio" answer to $2$ decimal places.$)$