Comparative financial statement data for Carmono Company follow:

This Year Last Year

Assets

Cash $ $12\mathrm{.}00$ $ $23\mathrm{.}00$

Accounts receivable $68\mathrm{.}0061\mathrm{.}00$

Inventory $115\mathrm{.}00102\mathrm{.}60$

Total current assets $195\mathrm{.}00186\mathrm{.}60$

Property, plant, and equipment $258\mathrm{.}00212\mathrm{.}00$

Less accumulated depreciation $52\mathrm{.}8039\mathrm{.}60$

Net property, plant, and equipment $205\mathrm{.}20172\mathrm{.}40$

Total assets $ $400\mathrm{.}20$ $ $359\mathrm{.}00$

Liabilities and Stockholders$$ Equity

Accounts payable $ $69\mathrm{.}00$ $ $55\mathrm{.}00$

Common stock $154\mathrm{.}00118\mathrm{.}00$

Retained earnings $177\mathrm{.}20186\mathrm{.}00$

Total liabilities and stockholders$$ equity $ $400\mathrm{.}20$ $ $359\mathrm{.}00$

For this year, the company reported net income as follows:

Sales $ $1,300\mathrm{.}00$

Cost of goods sold $780\mathrm{.}00$

Gross margin $520\mathrm{.}00$

Selling and administrative expenses $500\mathrm{.}00$

Net income $ $20\mathrm{.}00$

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 Carmono$$s free cash flow for this year.Using the indirect method, prepare a statement of cash flows for this year. $($List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to $2$ decimal places.$)$

$\backslash$table$[[$Carmono Company$],[$Statement of Cash Flows$],[$For This Year Ended December $31],[$Operating activities:$],[$Net income,,$20\mathrm{.}00],[$Depreciation$,13\mathrm{.}20,],[$Increase in accounts receivable,$(7\mathrm{.}00),],[$Increase in inventory,$(12\mathrm{.}40),],[$Increase in accounts payable,$14\mathrm{.}00,],[,7\mathrm{.}80],[,27\mathrm{.}80],[$Investing activities:$],[$Increase in plant and equipment,$(46\mathrm{.}00),],[,(46\mathrm{.}00)$