Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 17.00	$ 33.00
Accounts receivable	88.00	81.00
Inventory	140.00	128.60
Total current assets	245.00	242.60
Property, plant, and equipment	288.00	232.00
Less accumulated depreciation	60.80	45.60
Net property, plant, and equipment	227.20	186.40
Total assets	$ 472.20	$ 429.00
Liabilities and Stockholders Equity
Accounts payable	$ 84.00	$ 65.00
Common stock	194.00	148.00
Retained earnings	194.20	216.00
Total liabilities and stockholders equity	$ 472.20	$ 429.00

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

Sales	$ 1,800.00
Cost of goods sold	1,080.00
Gross margin	720.00
Selling and administrative expenses	700.00
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.