Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 9.00	$ 17.00
Accounts receivable	56.00	49.00
Inventory	100.00	87.00
Total current assets	165.00	153.00
Property, plant, and equipment	240.00	200.00
Less accumulated depreciation	48.00	36.00
Net property, plant, and equipment	192.00	164.00
Total assets	$ 357.00	$ 317.00
Liabilities and Stockholders Equity
Accounts payable	$ 60.00	$ 49.00
Common stock	130.00	100.00
Retained earnings	167.00	168.00
Total liabilities and stockholders equity	$ 357.00	$ 317.00

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

Sales	$ 1,000.00
Cost of goods sold	600.00
Gross margin	400.00
Selling and administrative expenses	380.00
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.