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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 17.00 $ 33.00 Accounts receivable 88.00 81.00 Inventory 140.00 128.60
Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash | $ | 17.00 | $ | 33.00 | |
Accounts receivable | 88.00 | 81.00 | |||
Inventory | 140.00 | 128.60 | |||
Total current assets | 245.00 | 242.60 | |||
Property, plant, and equipment | 288.00 | 232.00 | |||
Less accumulated depreciation | 60.80 | 45.60 | |||
Net property, plant, and equipment | 227.20 | 186.40 | |||
Total assets | $ | 472.20 | $ | 429.00 | |
Liabilities and Stockholders Equity | |||||
Accounts payable | $ | 84.00 | $ | 65.00 | |
Common stock | 194.00 | 148.00 | |||
Retained earnings | 194.20 | 216.00 | |||
Total liabilities and stockholders equity | $ | 472.20 | $ | 429.00 | |
For this year, the company reported net income as follows:
Sales | $ | 1,800.00 |
Cost of goods sold | 1,080.00 | |
Gross margin | 720.00 | |
Selling and administrative expenses | 700.00 | |
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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