compaiduve inancial Statement Udld II Lomono company TONOW. This Year Last Year $ 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 $ 3 22 50 75 240 65 175 $ 250 6 24 40 70 200 50 150 $ 220 $ 40 150 60 $ 250 $36 145 39 $ 220 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses $ 275 150 125 90 Return to qu 150 Cost of goods sold Gross margin Selling and administrative expenses Net income 125 98 $ 35 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Operating activities: Net income $ 130 X $ 16 % 9 (200) 16 % Adjustments to convert net income to a cash basis: Decrease in accounts receivable Decrease in accounts payable Increase in accounts receivable Increase in plant and equipment Issuance of common stock Net cash provided by investing activities Investing activities Repurchase of common stock Issuance of common stock Net cash used in investing activities Financing activities: Increase in accounts receivable Repurchase of common stock (159) (29) 9 X (200) x (191) X 150 (80) Drau .. Nout X 16 X (159) (29) 9 X XX (200) (191) Issuance of common stock Net cash provided by investing activities Investing activities Repurchase of common stock Issuance of common stock Net cash used in investing activities Financing activities Increase in accounts receivable Repurchase of common stock Cash dividends Net cash provided by financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents XXX 150 (80) (30) 40 (180) 90 (90) Requio Required 2 > "Y 1. Using the indirect method, prepare a statement of cash flows for this year. 2. Compute Carmono's free cash flow for this year. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign......... Free cash flow 130
