Comparative financial statement data for Carmono Company follow;

For this year, the company reported net income as follows:

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. (List any deduction in cash and cash outflows as negative amounts.)

Caromono Company Statement of Cash Flows For This Year Ended December 31

Operating activities:

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 This Year Last Year $3 22 50 75 240 65 175 $250 $40 150 60 $250 $6 24 40 70 200 50 150 $220 $36 145 39 $250 Sales Cost of goods sold Gross margin Selling and administrative expenses Net income $275 150 125 90 $35 Net income Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable Net cash provided by operating activities Investing activities: Increase in plant and equipment Net cash used in investing activities Financing activities: Increase in common stock Cash dividends Net cash provided by financing activities Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents $ LA $ 35 0 35 0 0 35 35