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.