Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 5.00	$ 9.00
Accounts receivable	40.00	33.00
Inventory	80.00	66.20
Total current assets	125.00	108.20
Property, plant, and equipment	216.00	184.00
Less accumulated depreciation	41.60	31.20
Net property, plant, and equipment	174.40	152.80
Total assets	$ 299.40	$ 261.00
Liabilities and Stockholders Equity
Accounts payable	$ 48.00	$ 41.00
Common stock	98.00	76.00
Retained earnings	153.40	144.00
Total liabilities and stockholders equity	$ 299.40	$ 261.00

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

Sales	$ 600.00
Cost of goods sold	360.00
Gross margin	240.00
Selling and administrative expenses	220.00
Net income	$ 20.00

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 Carmonos 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.)