Not entirely sure how the free of cash flows is not (18.40), any help/info would be greatly appreciated as other chegg experts seem to claim (18.40) being the answer to requirement 2 as well and I'm not sure what I did wrong! Thanks!
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 $ 12.50 70.00 117.50 200.00 261.00 53.60 207.40 $ 24.00 63.00 105.20 192.20 214.00 40.20 173.80 $366.00 $407.40 $ 70.50 158.00 178.90 $ 56.00 121.00 189.00 $366.00 $407.40 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income $1,350.00 810.00 540.00 $ 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. Return t 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.) $ 20.00 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: Depreciation Increase in accounts receivable Increase in inventory Increase in accounts payable 13.40 (7.00) (12.30) 14.50 8.60 28.60 Net cash provided by operating activities Investing activities: Increase in plant and equipment (47.00) (47.00) Net income $ 20.00 $ Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Increase in inventory 13.40 (7.00) (12.30) 14.50 Increase in accounts payable 8.60 28.60 Net cash provided by operating activities Investing activities: Increase in plant and equipment (47.00) (47.00) Financing activities: Issuance of common stock 37.00 (30.10) Cash dividends 6.90 Beginning cash and cash equivalents Ending cash and cash equivalents (11.50) 24.00 12.50 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. & Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIII 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.) IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII . . . Free cash flow $ (18.40)
