Accounting Chapter 14 Homework Help

Exercise 14-6 Prepare a Statement of Cash Flows; Free Cash Flow [L014-1, LO14-2, L014-3] Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment $ 6.00 44.00 85.00 135.00 222.00 43.20 11.00 37.00 71.40 119.40 188.00 32.40 155.60 $275.00 Less accumulated depreciation Net property, plant, and equipment Total assets $313.80 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 51.00 106.00 156.80 $ 43.00 82.00 150.00 $275.00 Total liabilities and stockholders' equity $313.80 For this year, the company reported net income as follows Sales Cost of goods sold Gross margin Selling and administrative expenses Net income $700.00 420.00 280.00 260.00 $ 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) Carmono Company Statement of Cash Flows For This Year Ended December 31 Operating activities 0.00 0.00 Investing activities: 0.00 Financing activities: 0.00 0.00 Beginning cash and cash equivalents Ending cash and cash equivalents 0.00