Question
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 19.00 $ 37.00 Accounts receivable 96.00 89.00 Inventory 150.00 139.00
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 19.00 $ 37.00 Accounts receivable 96.00 89.00 Inventory 150.00 139.00 Total current assets 265.00 265.00 Property, plant, and equipment 300.00 240.00 Less accumulated depreciation 64.00 48.00 Net property, plant, and equipment 236.00 192.00 Total assets $ 501.00 $ 457.00 Liabilities and Stockholders Equity Accounts payable $ 90.00 $ 69.00 Common stock 210.00 160.00 Retained earnings 201.00 228.00 Total liabilities and stockholders equity $ 501.00 $ 457.00 For this year, the company reported net income as follows: Sales $ 2,000.00 Cost of goods sold 1,200.00 Gross margin 800.00 Selling and administrative expenses 780.00 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. (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.)
Can someone please help me fix what I got wrong?
Answer is complete but not entirely correct Carmono Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Net income Adjustments to convert net income to a cash basis: 20 Depreciation Decrease in accounts receivable Increase in inventory Increase in accounts payable 18.00 21.00X 7.00X 11.00X 55.00 Net cash provided by operating activities Investing activities: Increase in plant and equipment 75.00 (60.00 Net cash used in investing activities Financing activities: Increase in common stock Cash dividends (80.00) 50.00 47.00X Net cash used in financing activities Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents 97.00 112.00 37 149.00 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.) Answer is complete but not entirely correct Free cash flowStep by Step Solution
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