Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 11.00	$ 21.00
Accounts receivable	64.00	57.00
Inventory	110.00	97.40
Total current assets	185.00	175.40
Property, plant, and equipment	252.00	208.00
Less accumulated depreciation	51.20	38.40
Net property, plant, and equipment	200.80	169.60
Total assets	$ 385.80	$ 345.00
Liabilities and Stockholders Equity
Accounts payable	$ 66.00	$ 53.00
Common stock	146.00	112.00
Retained earnings	173.80	180.00
Total liabilities and stockholders equity	$ 385.80	$ 345.00

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

Sales	$ 1,200.00
Cost of goods sold	720.00
Gross margin	480.00
Selling and administrative expenses	460.00
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.