Unit $10$ Lab Assignment

Question $9$ of $9$

Presented here are the financial statements of Coronado Company.

$\backslash$table$[[$CORONADO COMPANY Comparative Balance Sheets December $31],[$Assets$,2022,2021],[$Cash$,$$$36,000,$$$21,000],[$Accounts receivable,$32,700,18,900],[$Inventory$,30,100,20,100],[$Property$,$ plant, and equipment,$59,600,77\mathrm{.}600],[$Accumulated depreciation,$(29\mathrm{.}400),(93900)],[$Total$,$$$129,000,$$$114,300],[$Liabilities and Stockholders' Equity$],[$Accounts payable,$$28,000,$$$16800],[$Income taxes payable,$7\mathrm{.}200,8\mathrm{.}400],[$Bonds payable,$26,700,32\mathrm{.}100],[$Commonstock$,17,700,13,400],[$Retained earnings,$49\mathrm{.}400,43600],[$Total$,$$$129,000,$$$114,300]]$

CORONADO COMPANY

Income Statement

For the Year Ended December $31,2022$

Sales revenue

$$242,500$

Cost of goods sold

Gross profit

$\backslash$table$[[175,200]]$uestion $9$ of $9$

CORONADO COMPANY Income statement

For the Year Ended December $31,2022$

$\backslash$table$[[$Sales revenue,,$$242,500],[$Cost of goods sold,,$175,200],[$Gross profit,,$67,300],[$Selling expenses,$$18,675,],[$Administrative expenses,$6,225,24,900],[$Income from operations,,$42,400],[$Interest expense,,$2,700],[$Income before income taxes,,$39,700],[$Income tax expense,,$7\mathrm{.}940],[$Net income,,$$31\mathrm{.}760]]$

Additional data:

Depreciation expense was $$17,500.$

Dividends declared and pald were $$25,960.$

During the year, equipment was sold for $$6,600$ cash. This equipment originally cost $$18,000$ and had accumulated depreciation of $$11,400$ at the time of sale.

Bonds were redeemed at their carrying value.

Common stock was issued at par for cash.

Further analysis reveals the following.

Accounts payable pertain to merchandise suppliers.

All operating expenses except for depreciation were paid in cash.

All depreciation expense is in the selling expense category.

All sales and inventory purchases are on account.Unit $10$ Lab Assignment

Question $9$ of $9$

Further analysis reveals the following.

Accounts payable pertain to merchandise suppliers.

All operating expenses except for depreciation were paid in cash.

All depreciation expense is in the selling expense category.

All sales and inventory purchases are on account.

$($a$)$

Prepare a statement of cash flows for Coronado Company using the direct method. $($Show amounts that decrease cash flow with either a$-$sign eg$.--15,000$ or in parenthesis eg$.(15,000).)$

CORONADO COMPANY

Statement of Cash Flows

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$$Question $9$ of $9$

Prepare a statement of cash flows for Coronado Company using the direct method. $($Show amounts that decrease cash flow with either a$-$signeg $-15,000$ or in parenthesis eg$.(15,000).)$

CORONADO COMPANY Statement of Cash Flows

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$($b$)$

Compute free cash flow. $($Enter negative amount using either a negative sign preceding the number eg $-45$ or parentheses eg$.(45).)$

Free cash flow $$