Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 8.50	$ 16.00
Accounts receivable	54.00	47.00
Inventory	97.50	84.40
Total current assets	160.00	147.40
Property, plant, and equipment	237.00	198.00
Less accumulated depreciation	47.20	35.40
Net property, plant, and equipment	189.80	162.60
Total assets	$ 349.80	$ 310.00
Liabilities and Stockholders Equity
Accounts payable	$ 58.50	$ 48.00
Common stock	126.00	97.00
Retained earnings	165.30	165.00
Total liabilities and stockholders equity	$ 349.80	$ 310.00

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

Sales	$ 950.00
Cost of goods sold	570.00
Gross margin	380.00
Selling and administrative expenses	360.00
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.