For the year just completed, Hanna Company had net income of $55,500. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: December 31 End of Beginning Year of Year Current assets! Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Current liabilities: Accounts payable Accrued liabilities Incone taxes payable $ 63,000 $ 82,000 $152,000 $188,000 $433,000 $355,000 $ 12,000 $ 14,000 $362,000 $396,000 $ 8,000 $ 12,000 $ 35,000 $ 25,000 The Accumulated Depreciation account had total credits of $46,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Using the Indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.) Hanna Company Statement of Cash Flow Indirect Method (partial) Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 13.50 74.00 122.50 210.00 267.00 55.20 211.80 $421.80 $ 26.00 67.80 110.40 203.40 218.00 41.40 176.60 $380.00 $ 73.50 166.00 182.30 $421.80 $ 58.00 127.00 195.00 $380.00 For this year, the company reported net income as follows: Sales $1,458.00 Cost of goods sold 870.00 Gross margin 588.80 Selling and administrative expenses 560.00 Net income 5 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 Carmono's free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 Carmono's free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 For This Year Ended December 31 Operating activities Investing activities: Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents Required 2 > Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 73.50 166.00 182.38 $421.80 $ 58.00 127.00 195.00 $380.00 For this year, the company reported net income as follows: Sales $1,450.00 Cost of goods sold 870.00 Gross margin 580.00 Selling and administrative expenses 560.00 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. T 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 Carmono's free cash flow for this year 5 Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Free cash flow (Required 1
