Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 6.50	$ 12.00
Accounts receivable	46.00	39.00
Inventory	87.50	74.00
Total current assets	140.00	125.00
Property, plant, and equipment	225.00	190.00
Less accumulated depreciation	44.00	33.00
Net property, plant, and equipment	181.00	157.00
Total assets	$ 321.00	$ 282.00
Liabilities and Stockholders Equity
Accounts payable	$ 52.50	$ 44.00
Common stock	110.00	85.00
Retained earnings	158.50	153.00
Total liabilities and stockholders equity	$ 321.00	$ 282.00

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

Sales	$ 750.00
Cost of goods sold	450.00
Gross margin	300.00
Selling and administrative expenses	280.00
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.