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Comparative financial statement data for Carmono Company follow: 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 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income This Year $ 12.00 68.00 115.00 195.00 258.00 52.80 205.20 $ 400.20 $ 69.00 154.00 177.20 $ 400.20 $1,300.00 780.00 520.00 500.00 $ 20.00 Last Year $ 23.00 61.00 102.60 186.60 212.00 39.60 172.40 $ 359.00 $ 55.00 118.00 186.00 $ 359.00 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.

Comparative financial statement data for Carmono Company follow: 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 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income This Year $ 12.00 68.00 115.00 195.00 258.00 52.80 205.20 $ 400.20 $ 69.00 154.00 177.20 $ 400.20 $1,300.00 780.00 520.00 500.00 $ 20.00 Last Year $ 23.00 61.00 102.60 186.60 212.00 39.60 172.40 $ 359.00 $ 55.00 118.00 186.00 $ 359.00 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Comparative financial statement data for Carmono Company follow: 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 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income This Year $ 12.00 68.00 115.00 195.00 258.00 52.80 205.20 $ 400.20 $ 69.00 154.00 177.20 $ 400.20 $ 1,300.00 780.00 520.00 500.00 $ 20.00 Last Year $ 23.00 61.00 102.60 186.60 212.00 39.60 172.40 $ 359.00 $ 55.00 118.00 186.00 $ 359.00 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.
Transcribed Image Text:Comparative financial statement data for Carmono Company follow: 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 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income This Year $ 12.00 68.00 115.00 195.00 258.00 52.80 205.20 $ 400.20 $ 69.00 154.00 177.20 $ 400.20 $ 1,300.00 780.00 520.00 500.00 $ 20.00 Last Year $ 23.00 61.00 102.60 186.60 212.00 39.60 172.40 $ 359.00 $ 55.00 118.00 186.00 $ 359.00 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.
Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Carmono Company Statement of Cash Flows For This Year Ended December 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Free cash flow 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.) < Required 1 + Required 2 >
Transcribed Image Text:Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Carmono Company Statement of Cash Flows For This Year Ended December 31 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Free cash flow 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.) < Required 1 + Required 2 >
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