Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 13.00	$ 25.00
Accounts receivable	72.00	65.00
Inventory	120.00	107.80
Total current assets	205.00	197.80
Property, plant, and equipment	264.00	216.00
Less accumulated depreciation	54.40	40.80
Net property, plant, and equipment	209.60	175.20
Total assets	$ 414.60	$ 373.00
Liabilities and Stockholders Equity
Accounts payable	$ 72.00	$ 57.00
Common stock	162.00	124.00
Retained earnings	180.60	192.00
Total liabilities and stockholders equity	$ 414.60	$ 373.00

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

Sales	$ 1,400.00
Cost of goods sold	840.00
Gross margin	560.00
Selling and administrative expenses	540.00
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.