Comparative financial statement data for Carmono Company follow:

This YearLast YearAssets Cash$ 9.00$ 17.00Accounts receivable56.0049.00Inventory100.0087.00Total current assets165.00153.00Property, plant, and equipment240.00200.00Less accumulated depreciation48.0036.00Net property, plant, and equipment192.00164.00Total assets$ 357.00$ 317.00Liabilities and Stockholders Equity Accounts payable$ 60.00$ 49.00Common stock130.00100.00Retained earnings167.00168.00Total liabilities and stockholders equity$ 357.00$ 317.00

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

Sales$ 1,000.00Cost of goods sold600.00Gross margin400.00Selling and administrative expenses380.00Net 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.