Exercise $15-6($Algo$)$ Prepare a Statement of Cash Flows; Free Cash Flow $[$LO$15-1,$ LO$15-2,$ LO$15-3]$

Comparative financial statement data for Carmono Company follow:

This Year Last Year

Assets

Cash $ $6\mathrm{.}50$ $ $12\mathrm{.}00$

Accounts receivable $46\mathrm{.}0039\mathrm{.}00$

Inventory $87\mathrm{.}5074\mathrm{.}00$

Total current assets $140\mathrm{.}00125\mathrm{.}00$

Property, plant, and equipment $225\mathrm{.}00190\mathrm{.}00$

Less accumulated depreciation $44\mathrm{.}0033\mathrm{.}00$

Net property, plant, and equipment $181\mathrm{.}00157\mathrm{.}00$

Total assets $ $321\mathrm{.}00$ $ $282\mathrm{.}00$

Liabilities and Stockholders$$ Equity

Accounts payable $ $52\mathrm{.}50$ $ $44\mathrm{.}00$

Common stock $110\mathrm{.}0085\mathrm{.}00$

Retained earnings $158\mathrm{.}50153\mathrm{.}00$

Total liabilities and stockholders$$ equity $ $321\mathrm{.}00$ $ $282\mathrm{.}00$

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

Sales $ $750\mathrm{.}00$

Cost of goods sold $450\mathrm{.}00$

Gross margin $300\mathrm{.}00$

Selling and administrative expenses $280\mathrm{.}00$

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.$)$

Compute Carmono$$s free cash flow for this year. $($Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to $2$ decimal places.$)$