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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 Sales $5.50 42.00 Net income 82.50 130.00 219.00 42.40 176.60 $ 306.60 $ 49.50 102.00 155.10 Cost of goods sold Gross margin 260.00 Selling and administrative expenses 240.00 $ 20.00 $ 10.00 390.00 35.00 68.80 113.80 186.00 31.80 Retained earnings Total liabilities and stockholders' equity $306.60 $268.00 For this year, the company reported net income as follows: $ 650.00 154.20 $268.00 $42.00 79.00 147.00 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: 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 Sales $5.50 42.00 Net income 82.50 130.00 219.00 42.40 176.60 $ 306.60 $ 49.50 102.00 155.10 Cost of goods sold Gross margin 260.00 Selling and administrative expenses 240.00 $ 20.00 $ 10.00 390.00 35.00 68.80 113.80 186.00 31.80 Retained earnings Total liabilities and stockholders' equity $306.60 $268.00 For this year, the company reported net income as follows: $ 650.00 154.20 $268.00 $42.00 79.00 147.00 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: 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 $5.50 Sales 42.00 82.50 219.00 42.40 130.00 113.80 176.60 $ 49.50 102.00 $ 10.00 154.20 $ 306.60 $268.00 155.10 35.00 390.00 68.80 260.00 186.00 31.80 Retained earnings Total liabilities and stockholders' equity $306.60 $ 268.00 For this year, the company reported net income as follows: $ 650.00 $ 42.00 79.00 Cost of goods sold Gross margin Selling and administrative expenses 240.00 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. 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. 147.00
Transcribed Image Text: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 $5.50 Sales 42.00 82.50 219.00 42.40 130.00 113.80 176.60 $ 49.50 102.00 $ 10.00 154.20 $ 306.60 $268.00 155.10 35.00 390.00 68.80 260.00 186.00 31.80 Retained earnings Total liabilities and stockholders' equity $306.60 $ 268.00 For this year, the company reported net income as follows: $ 650.00 $ 42.00 79.00 Cost of goods sold Gross margin Selling and administrative expenses 240.00 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. 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. 147.00
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