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 and cash equivalents
$
7.00
$
13.00
Accounts receivable
48.00
41.00
Inventory
90.00
76.60
Total current assets
145.00
130.60
Property, plant, and equipment
228.00
192.00
Less accumulated depreciation
44.80
33.60
Net property, plant, and equipment
183.20
158.40
Total assets
$
328.20
$
289.00
Liabilities and Stockholders Equity
Accounts payable
$
54.00
$
45.00
Common stock
114.00
88.00
Retained earnings
160.20
156.00
Total liabilities and stockholders equity
$
328.20
$
289.00
For this year, the company reported net income as follows:
Sales
$
800.00
Cost of goods sold
480.00
Gross margin
320.00
Selling and administrative expenses
300.00
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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