Comparative financial statement data for Carmono Company follow:

	This Year		Last Year
Assets
Cash	$	14.00	$	27.00
Accounts receivable		76.00		69.00
Inventory		125.00		113.00
Total current assets		215.00		209.00
Property, plant, and equipment		270.00		220.00
Less accumulated depreciation		56.00		42.00
Net property, plant, and equipment		214.00		178.00
Total assets	$	429.00	$	387.00
Liabilities and Stockholders Equity
Accounts payable	$	75.00	$	59.00
Common stock		170.00		130.00
Retained earnings		184.00		198.00
Total liabilities and stockholders equity	$	429.00	$	387.00

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

Sales	$	1,500.00
Cost of goods sold		900.00
Gross margin		600.00
Selling and administrative expenses		580.00
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. (List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to 2 decimal places.)

Carmono Company
Statement of Cash Flows - Indirect Method
For This Year Ended December 31
Operating activities:
Adjustments to convert net income to a cash basis:
Investing activities:
Financing activities:
Beginning cash and cash equivalents
Ending cash and cash equivalents

2.

Compute Carmonos 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.)

Free cash flow