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	$ 220

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.

Required:

1. Using the indirect method, prepare a statement of cash flows for this year.

2. Compute Carmonos free cash flow for this year.