Question
Comparative financial statement data for Carmono Company follow: This YearLast Year Assets Cash$3$6Accounts receivable2224Inventory5040Total current assets7570Property, plant, and equipment240200Less accumulated depreciation6550Net property, plant, and equipment175150Total
Comparative financial statement data for Carmono Company follow:
This YearLast YearAssetsCash$3$6Accounts receivable2224Inventory5040Total current assets7570Property, plant, and equipment240200Less accumulated depreciation6550Net property, plant, and equipment175150Total assets$250$220Liabilities and Stockholders' EquityAccounts payable$40$36Common stock150145Retained earnings6039Total liabilities and stockholders' equity$250$220
For this year, the company reported net income as follows:
Sales$275Cost of goods sold150Gross margin125Selling and administrative expenses90Net income$35
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:
Using the direct method, convert the company's income statement to a cash basis.(Adjustment amounts that are to be deducted should be indicated with a minus sign.)
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