Question: Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 3 $ 6 Accounts receivable 22 24 Inventory 50 40

Comparative financial statement data for Carmono Company follow:

This Year Last Year
Assets
Cash $ 3 $ 6
Accounts receivable 22 24
Inventory 50 40

Total current assets 75 70

Property, plant, and equipment 240 200
Less accumulated depreciation 65 50

Net property, plant, and equipment 175 150

Total assets $ 250 $ 220

Liabilities and Stockholders Equity
Accounts payable $ 40 $ 36
Common stock 150 145
Retained earnings 60 39

Total liabilities and stockholders equity $ 250 $ 250

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

Sales $ 275
Cost of goods sold 150

Gross margin 125
Selling and administrative expenses 90

Net income $ 35

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.

Compute Carmonos free cash flow for this year.

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