Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 10.00 $
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Question:
Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash | $ | 10.00 | $ | 19.00 | |
Accounts receivable | 60.00 | 53.00 | |||
Inventory | 105.00 | 92.20 | |||
Total current assets | 175.00 | 164.20 | |||
Property, plant, and equipment | 246.00 | 204.00 | |||
Less accumulated depreciation | 49.60 | 37.20 | |||
Net property, plant, and equipment | 196.40 | 166.80 | |||
Total assets | $ | 371.40 | $ | 331.00 | |
Liabilities and Stockholders’ Equity | |||||
Accounts payable | $ | 63.00 | $ | 51.00 | |
Common stock | 138.00 | 106.00 | |||
Retained earnings | 170.40 | 174.00 | |||
Total liabilities and stockholders’ equity | $ | 371.40 | $ | 331.00 | |
For this year, the company reported net income as follows:
Sales | $ | 1,100.00 |
Cost of goods sold | 660.00 | |
Gross margin | 440.00 | |
Selling and administrative expenses | 420.00 | |
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.
Carmono CompanyStatement of Cash FlowsFor This Year Ended December 31Operating activities:Investing activities:Financing activities:Beginning cash and cash equivalentsEnding cash and cash equivalents
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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