Question
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 18.00 $ 35.00 Accounts receivable 92.00 85.00 Inventory 145.00 133.80
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 18.00 $ 35.00 Accounts receivable 92.00 85.00 Inventory 145.00 133.80 Total current assets 255.00 253.80 Property, plant, and equipment 294.00 236.00 Less accumulated depreciation 62.40 46.80 Net property, plant, and equipment 231.60 189.20 Total assets $ 486.60 $ 443.00 Liabilities and Stockholders Equity Accounts payable $ 87.00 $ 67.00 Common stock 202.00 154.00 Retained earnings 197.60 222.00 Total liabilities and stockholders equity $ 486.60 $ 443.00 For this year, the company reported net income as follows: Sales $ 1,900.00 Cost of goods sold 1,140.00 Gross margin 760.00 Selling and administrative expenses 740.00 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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