cate whether the dollar amount method when computing the 1, Lo14-2, Lo14-3 Prepare an answer sheet using the following column headings: Item Amount Add Subtract For each item, place an X in the Add or Subtract column to indicate whether the should be added to or subtracted from net income under the indirect method when net cash provided by operating activities for the year. EXERCISE 14-6 Prepare a Statement of Cash Flows; Free Cash Flow LC Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash and cash equivalents .. $ 3 $ 6 Accounts receivable 22 24 Inventory 50 Total current assets. Property, plant, and equipment ..... 240 Less accumulated depreciation .... 65 Net property, plant, and equipment 175 150 Total assets ... $250 $220 40 - 200 50 Liabilities and Stockholders' Equity Accounts payable.. Common stock Retained earnings ........ Total liabilities and stockholders' equity ...... $ 40 150 60 $250 $ 36 145 39 $220 | Statement of Cash Flows For this year, the company reported net income as foll $275 Sales .. Cost of goods sold ..... Gross margin ........ Selling and administrative expenses Net income .... $ 35 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