Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 8.00 $ 15.00 Accounts receivable 52.00 45.00 Inventory 95.00 81.80 Total current assets 155.00 141.80 Property, plant, and equipment 234.00 196.00 Less accumulated depreciation 46.40 34.80 Net property, plant, and equipment 187.60 161.20 Total assets $ 342.60 $ 303.00 Liabilities and Stockholders Equity Accounts payable $ 57.00 $ 47.00 Common stock 122.00 94.00 Retained earnings 163.60 162.00 Total liabilities and stockholders equity $ 342.60 $ 303.00 For this year, the company reported net income as follows: Sales $ 900.00 Cost of goods sold 540.00 Gross margin 360.00 Selling and administrative expenses 340.00 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. (List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to 2 decimal places.)

2. Compute Carmonos free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.)