Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Comparative financial statement data for Carmono Company follow This Year Last Year Assets Cash Accounts receivable Inventory $ 8.00 15.00 45.00 81.80 52.00 95.00 Total

image text in transcribed
image text in transcribed
image text in transcribed
Comparative financial statement data for Carmono Company follow This Year Last Year Assets Cash Accounts receivable Inventory $ 8.00 15.00 45.00 81.80 52.00 95.00 Total current assets 155.00 141.80 Property, plant, and equipment 234.00 196.00 34.80 Less accumulated depreciation 46.40 Net property, plant, and equipment 187.60 161.20 Total assets S 342.60 $303.00 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 57.00 47.00 122.00 94.00 163.60 162.00 Total liabilities and stockholders' equity $ 342.60 $303.00 For this year, the company reported net income as follows: Sales Cost of goods sold $900.00 540.00 Gross margin Selling and administrative expenses 360.00 340.00 Net income s 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. (List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to 2 decimal places.) Carmono Company Statement of Cash Flows- Indirect Method For This Year Ended December 31 Operating activities: Net income Adjustments to convert net income to a cash basis: 20.00 Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable 0.00 Net cash provided by operating activities Investing activities: Increase in plant and equipment 20.00 0.00 Net cash used in investing activities Financing activities: Increase in common stock Cash dividends 0.00 Net cash provided by financing activities Net decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents 20.00 20.00 2. Compute Carmono's 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.) ree cash flow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Srivastava Lal, Jawahar Lal

5th Edition

1259026523, 978-1259026522

More Books

Students also viewed these Accounting questions

Question

List and briefly explain the fields in an ATM cell.

Answered: 1 week ago