Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative financial statement data for Carmono Company follow: Thin Year Last Year Assets Cash Accounts receivable Inventory Total current to Property, plant, and equipment Lesa

image text in transcribed
image text in transcribed
image text in transcribed
Comparative financial statement data for Carmono Company follow: Thin Year Last Year Assets Cash Accounts receivable Inventory Total current to Property, plant, and equipment Lesa accumulated depreciation Net property, plant, and equipment Total assets Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $6.00 44.00 85.00 135.00 222.00 43.20 178.30 $313.80 5 11.00 37.00 71.40 119.40 188.00 32.40 155.60 $275.00 $ 51.00 106.00 156.80 $313.80 $43.00 82.00 150.00 $275.00 For this year, the company reported net income as follows: Salen Cost of goods sold Gros margin Selling and administrative expenses Net income $700.00 420.00 280.00 260.00 $ 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. 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. Round your intermediate calculations and final answers to 2 decimal places.) Carmono Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Net income 0.00 0.00 Investing activities 0.00 Financing activities 0.00 0.00 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0.00 Sale Cost of goods sold Grous margin Selling and administrative expenses Net income 8700.00 20.00 280.00 260.00 $ 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. 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. Round your intermediate calculations and final answer to 2 decimal places.) Free cash flow (Required 1 Fequired

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Financial Accounting Information For Decisions

Authors: Author

10th Edition

1260386937, 9781260386936

More Books

Students also viewed these Accounting questions

Question

In bargaining, does it really matter who makes the first offer?

Answered: 1 week ago