Question: 4. (15 points) Red Hat Company has comparative financial statement data as below: This Your Last Year Assets Cast and cash equivalents $ S Accounts
4. (15 points) Red Hat Company has comparative financial statement data as below: This Your Last Year Assets Cast and cash equivalents $ S Accounts receivable 24 loventory 50 10 Total current issets 75 70 Property, plant and equipment 240 200 Less accumulated depreciation 65 50 Net property, plant, and equipment 175 150 Total assets 5250 5220 Liabilities and Stockholders' Equity Accounts payable 540 $36 Common stock 150 145 60 19 Retained earnings Total liabilities and stockholders' equity $250 $220 The company reported net income for this year as follows: Sales $275 Cost of goods sold 150 Gross margin 125 Selling and administrative expenses 90 Net income 3:35 Additional information: 1. Red Hat declared and paid a cash dividend. b. There were no sales of property, plant, and equipment. c. The company did not repurchase any own stock this year. Required: 1) Using the indirect method, prepare a statement of cash flows for this year. 2) Compute Red Hat Company's free cash flow for this year
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