Comparative financial statement data for Carmono Company follow: Assets Cash and cash equivalents 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 This Year Last Year $ 4.50 $ 8.00 38.00 77.50 120.00 213.00 40.80 172.20 $ 292.20 31.00 63.60 102.60 182.00 30.60 151.40 $ 254.00 $ 40.00 73.00 141.00 $ 46.50 94.00 151.70 $ 292.20 $ 254.00 Total liabilities and stockholders' equity For this year, the company reported net income as follows: Sales $ 550.00 Cost of goods sold Gross margin Selling and administrative expenses Net income 330.00 220.00 200.00 $ 20.00 This year Carmono paid a cash dividend but it did not sell any property, plant, and equipment or repurchase any of its own stock 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 and cash equivalents 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 This Year Last Year $ 4.50 $ 8.00 38.00 77.50 120.00 213.00 40.80 172.20 $ 292.20 31.00 63.60 102.60 182.00 30.60 151.40 $ 254.00 $ 40.00 73.00 141.00 $ 46.50 94.00 151.70 $ 292.20 $ 254.00 Total liabilities and stockholders' equity For this year, the company reported net income as follows: Sales $ 550.00 Cost of goods sold Gross margin Selling and administrative expenses Net income 330.00 220.00 200.00 $ 20.00 This year Carmono paid a cash dividend but it did not sell any property, plant, and equipment or repurchase any of its own stock 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Comparative financial statement data for Carmono Company follow:
Assets
Cash and cash equivalents
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
This Year
Last Year
$ 4.50
$ 8.00
38.00
77.50
120.00
213.00
40.80
172.20
$ 292.20
31.00
63.60
102.60
182.00
30.60
151.40
$ 254.00
$ 40.00
73.00
141.00
$ 46.50
94.00
151.70
$ 292.20
$ 254.00
Total liabilities and stockholders' equity
For this year, the company reported net income as follows:
Sales
$ 550.00
Cost of goods sold
Gross margin
Selling and administrative expenses
Net income
330.00
220.00
200.00
$ 20.00
This year Carmono paid a cash dividend but it did not sell any property, plant, and equipment or repurchase any of its own stock
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.
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