Comparative financial statement data for Carmono Company follow: ...
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Accounting
Comparative financial statement data for Carmono Company follow:
This Year
Last Year
Assets
Cash
$ 9.00
$ 17.00
Accounts receivable
56.00
49.00
Inventory
100.00
87.00
Total current assets
165.00
153.00
Property, plant, and equipment
240.00
200.00
Less accumulated depreciation
48.00
36.00
Net property, plant, and equipment
192.00
164.00
Total assets
$ 357.00
$ 317.00
Liabilities and Stockholders Equity
Accounts payable
$ 60.00
$ 49.00
Common stock
130.00
100.00
Retained earnings
167.00
168.00
Total liabilities and stockholders equity
$ 357.00
$ 317.00
For this year, the company reported net income as follows:
Sales
$ 1,000.00
Cost of goods sold
600.00
Gross margin
400.00
Selling and administrative expenses
380.00
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 Carmonos free cash flow for this year.
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