This Year			Last Year
Assets
Cash	$	6.00		$	11.00
Accounts receivable		44.00			37.00
Inventory		85.00			71.40
Total current assets		135.00			119.40
Property, plant, and equipment		222.00			188.00
Less accumulated depreciation		43.20			32.40
Net property, plant, and equipment		178.80			155.60
Total assets	$	313.80		$	275.00
Liabilities and Stockholders Equity
Accounts payable	$	51.00		$	43.00
Common stock		106.00			82.00
Retained earnings		156.80			150.00
Total liabilities and stockholders equity	$	313.80		$	275.00

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

Sales	$	700.00
Cost of goods sold		420.00
Gross margin		280.00
Selling and administrative expenses		260.00
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. Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to 2 decimal places.)

2. Compute Carmonos free cash flow for this year. Compute Carmonos free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.)