Question: Please show the equations being used or how you are getting the numbers (the work) Thank you 4. (15 points) Red Hat Company has comparative
4. (15 points) Red Hat Company has comparative financial statement data as below: This Year Last Year Assets Cash and cash equivalents Accounts receivable S 56 22 24 Inventory SO 40 75 70 200 65 50 175 150 $220 Total current assets Property, plant, and equipment 240 Les accumulated depreciation Net property, plant, and equipment Total assets $250 Liabilities and Stockholders' Equity Accounts payable $ 40 Common stock Retained earnings 60 Total liabilities and stockholders equity $250 The company reported net income for this year as follows: Sales $275 $36 ISO 145 39 5220 Cost of goods sold 150 Grossi 125 Selling and adesinistrative expenses 90 Net income $ 35 Additional information: a. 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
