Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net...

Transcribed Image Text:

Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Common stock Accounts payable Retained earnings Total liabilities and stockholders' equity For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin $ 650.00 390.00 Check This Year Last Year $ 5.50 $ 10.00 42.00 35.00 82.50 68.80 130.00 113.80 219.00 186.00 31.80 42.40 176.60 $ 306.60 $ 49.50 102.00 155.10 154.20 $ 268.00 $ 42.00 79.00 147.00 $ 306.60 $ 268.00 Selling and administrative expenses Net income 260.00 240.00 $ 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. Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Common stock Accounts payable Retained earnings Total liabilities and stockholders' equity For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin $ 650.00 390.00 Check This Year Last Year $ 5.50 $ 10.00 42.00 35.00 82.50 68.80 130.00 113.80 219.00 186.00 31.80 42.40 176.60 $ 306.60 $ 49.50 102.00 155.10 154.20 $ 268.00 $ 42.00 79.00 147.00 $ 306.60 $ 268.00 Selling and administrative expenses Net income 260.00 240.00 $ 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.