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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 14.50 $ 28.00 Accounts receivable 78.00 71.00 Inventory 127.50 115.60
Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash | $ | 14.50 | $ | 28.00 | |
Accounts receivable | 78.00 | 71.00 | |||
Inventory | 127.50 | 115.60 | |||
Total current assets | 220.00 | 214.60 | |||
Property, plant, and equipment | 273.00 | 222.00 | |||
Less accumulated depreciation | 56.80 | 42.60 | |||
Net property, plant, and equipment | 216.20 | 179.40 | |||
Total assets | $ | 436.20 | $ | 394.00 | |
Liabilities and Stockholders Equity | |||||
Accounts payable | $ | 76.50 | $ | 60.00 | |
Common stock | 174.00 | 133.00 | |||
Retained earnings | 185.70 | 201.00 | |||
Total liabilities and stockholders equity | $ | 436.20 | $ | 394.00 | |
For this year, the company reported net income as follows:
Sales | $ | 1,550.00 |
Cost of goods sold | 930.00 | |
Gross margin | 620.00 | |
Selling and administrative expenses | 600.00 | |
Net income | $ | 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 Carmonos free cash flow for this year.
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