Comparative financial statement data for Carmono Company follow:

	This Year	Last Year
Assets
Cash	$ 17.50	$ 34.00
Accounts receivable	90.00	83.00
Inventory	142.50	131.20
Total current assets	250.00	248.20
Property, plant, and equipment	291.00	234.00
Less accumulated depreciation	61.60	46.20
Net property, plant, and equipment	229.40	187.80
Total assets	$ 479.40	$ 436.00
Liabilities and Stockholders Equity
Accounts payable	$ 85.50	$ 66.00
Common stock	198.00	151.00
Retained earnings	195.90	219.00
Total liabilities and stockholders equity	$ 479.40	$ 436.00

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

Sales	$ 1,850.00
Cost of goods sold	1,110.00
Gross margin	740.00
Selling and administrative expenses	720.00
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.