Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 7.00	$ 13.00
Accounts receivable	48.00	41.00
Inventory	90.00	76.60
Total current assets	145.00	130.60
Property, plant, and equipment	228.00	192.00
Less accumulated depreciation	44.80	33.60
Net property, plant, and equipment	183.20	158.40
Total assets	$ 328.20	$ 289.00
Liabilities and Stockholders Equity
Accounts payable	$ 54.00	$ 45.00
Common stock	114.00	88.00
Retained earnings	160.20	156.00
Total liabilities and stockholders equity	$ 328.20	$ 289.00

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

Sales	$ 800.00
Cost of goods sold	480.00
Gross margin	320.00
Selling and administrative expenses	300.00
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.