Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 12.50 $ 24.00 Accounts receivable 70.00 63.00 Inventory 117.50 105.20
Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash | $ | 12.50 | $ | 24.00 | |
Accounts receivable | 70.00 | 63.00 | |||
Inventory | 117.50 | 105.20 | |||
Total current assets | 200.00 | 192.20 | |||
Property, plant, and equipment | 261.00 | 214.00 | |||
Less accumulated depreciation | 53.60 | 40.20 | |||
Net property, plant, and equipment | 207.40 | 173.80 | |||
Total assets | $ | 407.40 | $ | 366.00 | |
Liabilities and Stockholders Equity | |||||
Accounts payable | $ | 70.50 | $ | 56.00 | |
Common stock | 158.00 | 121.00 | |||
Retained earnings | 178.90 | 189.00 | |||
Total liabilities and stockholders equity | $ | 407.40 | $ | 366.00 | |
For this year, the company reported net income as follows:
Sales | $ | 1,350.00 |
Cost of goods sold | 810.00 | |
Gross margin | 540.00 | |
Selling and administrative expenses | 520.00 | |
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started