Comparative financial statement data for Carmono Company follow:

This Year Last Year

Assets

Cash $ $13\mathrm{.}00$ $ $25\mathrm{.}00$

Accounts receivable $72\mathrm{.}0065\mathrm{.}00$

Inventory $120\mathrm{.}00107\mathrm{.}80$

Total current assets $205\mathrm{.}00197\mathrm{.}80$

Property, plant, and equipment $264\mathrm{.}00216\mathrm{.}00$

Less accumulated depreciation $54\mathrm{.}4040\mathrm{.}80$

Net property, plant, and equipment $209\mathrm{.}60175\mathrm{.}20$

Total assets $ $414\mathrm{.}60$ $ $373\mathrm{.}00$

Liabilities and Stockholders$$ Equity

Accounts payable $ $72\mathrm{.}00$ $ $57\mathrm{.}00$

Common stock $162\mathrm{.}00124\mathrm{.}00$

Retained earnings $180\mathrm{.}60192\mathrm{.}00$

Total liabilities and stockholders$$ equity $ $414\mathrm{.}60$ $ $373\mathrm{.}00$

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

Sales $ $1,400\mathrm{.}00$

Cost of goods sold $840\mathrm{.}00$

Gross margin $560\mathrm{.}00$

Selling and administrative expenses $540\mathrm{.}00$

Net income $ $20\mathrm{.}00$

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 Carmono$$s free cash flow for this year.