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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 16.50 $ 32.00 Accounts receivable 86.00 79.00 Inventory 137.50 126.00
Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash | $ | 16.50 | $ | 32.00 | |
Accounts receivable | 86.00 | 79.00 | |||
Inventory | 137.50 | 126.00 | |||
Total current assets | 240.00 | 237.00 | |||
Property, plant, and equipment | 285.00 | 230.00 | |||
Less accumulated depreciation | 60.00 | 45.00 | |||
Net property, plant, and equipment | 225.00 | 185.00 | |||
Total assets | $ | 465.00 | $ | 422.00 | |
Liabilities and Stockholders Equity | |||||
Accounts payable | $ | 82.50 | $ | 64.00 | |
Common stock | 190.00 | 145.00 | |||
Retained earnings | 192.50 | 213.00 | |||
Total liabilities and stockholders equity | $ | 465.00 | $ | 422.00 | |
For this year, the company reported net income as follows:
Sales | $ | 1,750.00 |
Cost of goods sold | 1,050.00 | |
Gross margin | 700.00 | |
Selling and administrative expenses | 680.00 | |
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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