Question
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 10.50 $ 20.00 Accounts receivable 62.00 55.00 Inventory 107.50 94.80
Comparative financial statement data for Carmono Company follow: |
| This Year | Last Year | ||
Assets |
|
| ||
Cash | $ | 10.50 | $ | 20.00 |
Accounts receivable |
| 62.00 |
| 55.00 |
Inventory |
| 107.50 |
| 94.80 |
|
|
|
|
|
Total current assets |
| 180.00 |
| 169.80 |
|
|
|
|
|
Property, plant, and equipment |
| 249.00 |
| 206.00 |
Less accumulated depreciation |
| 50.40 |
| 37.80 |
|
|
|
|
|
Net property, plant, and equipment |
| 198.60 |
| 168.20 |
|
|
|
|
|
Total assets | $ | 378.60 | $ | 338.00 |
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|
|
|
Liabilities and Stockholders Equity |
|
|
|
|
Accounts payable | $ | 64.50 | $ | 52.00 |
Common stock |
| 142.00 |
| 109.00 |
Retained earnings |
| 172.10 |
| 177.00 |
|
|
|
|
|
Total liabilities and stockholders equity | $ | 378.60 | $ | 338.00 |
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For this year, the company reported net income as follows: |
|
|
|
Sales | $ | 1,150.00 |
Cost of goods sold |
| 690.00 |
|
|
|
Gross margin |
| 460.00 |
Selling and administrative expenses |
| 440.00 |
|
|
|
Net income | $ | 20.00 |
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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. |
1. | 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.) |
2. | Compute Carmonos 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.) |
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