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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 7.50 $ 14.00 Accounts receivable 50.00 43.00 Inventory 92.50 79.20
Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash | $ | 7.50 | $ | 14.00 | |
Accounts receivable | 50.00 | 43.00 | |||
Inventory | 92.50 | 79.20 | |||
Total current assets | 150.00 | 136.20 | |||
Property, plant, and equipment | 231.00 | 194.00 | |||
Less accumulated depreciation | 45.60 | 34.20 | |||
Net property, plant, and equipment | 185.40 | 159.80 | |||
Total assets | $ | 335.40 | $ | 296.00 | |
Liabilities and Stockholders Equity | |||||
Accounts payable | $ | 55.50 | $ | 46.00 | |
Common stock | 118.00 | 91.00 | |||
Retained earnings | 161.90 | 159.00 | |||
Total liabilities and stockholders equity | $ | 335.40 | $ | 296.00 | |
For this year, the company reported net income as follows:
Sales | $ | 850.00 |
Cost of goods sold | 510.00 | |
Gross margin | 340.00 | |
Selling and administrative expenses | 320.00 | |
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.
Microsoft AutoUpdate Update is ready to be install Carmono Company Statement of Cash Flows For This Year Ended December 31 Operating activities 0.00 0.00 Investing activities: 0.00 Financing activities: 0.00 0.00 Beginning cash and cash equivalents Ending cash and cash equivalents 0.00Step by Step Solution
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