Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 5.00 $ 9.00 Accounts receivable 40.00 33.00 Inventory 80.00 66.20 Total current assets 125.00 108.20 Property, plant, and equipment 216.00 184.00 Less accumulated depreciation 41.60 31.20 Net property, plant, and equipment 174.40 152.80 Total assets $ 299.40 $ 261.00 Liabilities and Stockholders’ Equity Accounts payable $ 48.00 $ 41.00 Common stock 98.00 76.00 Retained earnings 153.40 144.00 Total liabilities and stockholders’ equity $ 299.40 $ 261.00 For this year, the company reported net income as follows: Sales $ 600.00 Cost of goods sold 360.00 Gross margin 240.00 Selling and administrative expenses 220.00 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 Carmono’s free cash flow for this year.