Comparative financial statement data for Carmono Company follow: Assets Cash Accounts receivable Inventory Total current assets...

Transcribed Image Text:

Comparative financial statement data for Carmono Company follow: 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 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity For this year, the company reported net income as follows: Sales This Year Last Year $ 12.00 68.00 $ 23.00 61.00 115.00 102.60 195.00 186.60 258.00 212.00 52.80 205.20 $ 400.20 $ 69.00 154.00 177.20 39.60 172.40 $ 359.00 $ 55.00 118.00 186.00 $ 400.20 $ 359.00 Cost of goods sold Gross margin Selling and administrative expenses Net income $ 1,300.00 780.00 520.00 500.00 $ 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. Comparative financial statement data for Carmono Company follow: 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 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity For this year, the company reported net income as follows: Sales This Year Last Year $ 12.00 68.00 $ 23.00 61.00 115.00 102.60 195.00 186.60 258.00 212.00 52.80 205.20 $ 400.20 $ 69.00 154.00 177.20 39.60 172.40 $ 359.00 $ 55.00 118.00 186.00 $ 400.20 $ 359.00 Cost of goods sold Gross margin Selling and administrative expenses Net income $ 1,300.00 780.00 520.00 500.00 $ 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.

Answer rating: 100% (QA)

To prepare the statement of cash flows using the indirect method we start with net income and adjust ... View the full answer