Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 5.50	$ 10.00
Accounts receivable	42.00	35.00
Inventory	82.50	68.80
Total current assets	130.00	113.80
Property, plant, and equipment	219.00	186.00
Less accumulated depreciation	42.40	31.80
Net property, plant, and equipment	176.60	154.20
Total assets	$ 306.60	$ 268.00
Liabilities and Stockholders Equity
Accounts payable	$ 49.50	$ 42.00
Common stock	102.00	79.00
Retained earnings	155.10	147.00
Total liabilities and stockholders equity	$ 306.60	$ 268.00

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

Sales	$ 650.00
Cost of goods sold	390.00
Gross margin	260.00
Selling and administrative expenses	240.00
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.