$\backslash$table$[[$Carmono Company$],[$Statement of Cash Flows$],[$For This Year Ended December $31],[$Operating activities:$],[,],[,],[,],[,],[,],[,],[,0\mathrm{.}00],[,0\mathrm{.}00],[$Investing activities:$],[,],[,],[,0\mathrm{.}00],[$Financing activities:$],[,],[,],[,],[,0\mathrm{.}00],[,0\mathrm{.}00],[$Beginning cash and cash equivalents$],[$Ending cash and cash equivalents,$0\mathrm{.}00]]$Comparative financial statement data for Carmono Company follow:

This Year Last Year

Assets

Cash $ $12\mathrm{.}50$ $ $24\mathrm{.}00$

Accounts receivable $70\mathrm{.}0063\mathrm{.}00$

Inventory $117\mathrm{.}50105\mathrm{.}20$

Total current assets $200\mathrm{.}00192\mathrm{.}20$

Property, plant, and equipment $261\mathrm{.}00214\mathrm{.}00$

Less accumulated depreciation $53\mathrm{.}6040\mathrm{.}20$

Net property, plant, and equipment $207\mathrm{.}40173\mathrm{.}80$

Total assets $ $407\mathrm{.}40$ $ $366\mathrm{.}00$

Liabilities and Stockholders$$ Equity

Accounts payable $ $70\mathrm{.}50$ $ $56\mathrm{.}00$

Common stock $158\mathrm{.}00121\mathrm{.}00$

Retained earnings $178\mathrm{.}90189\mathrm{.}00$

Total liabilities and stockholders$$ equity $ $407\mathrm{.}40$ $ $366\mathrm{.}00$

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

Sales $ $1,350\mathrm{.}00$

Cost of goods sold $810\mathrm{.}00$

Gross margin $540\mathrm{.}00$

Selling and administrative expenses $520\mathrm{.}00$

Net income $ $20\mathrm{.}00$

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 Carmono$$s free cash flow for this year.