Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $...
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Accounting
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 15.00 $ 29.00 Accounts receivable 80.00 73.00 Inventory 130.00 118.20 Total current assets 225.00 220.20 Property, plant, and equipment 276.00 224.00 Less accumulated depreciation 57.60 43.20 Net property, plant, and equipment 218.40 180.80 Total assets $ 443.40 $ 401.00 Liabilities and Stockholders Equity Accounts payable $ 78.00 $ 61.00 Common stock 178.00 136.00 Retained earnings 187.40 204.00 Total liabilities and stockholders equity $ 443.40 $ 401.00 For this year, the company reported net income as follows: Sales $ 1,600.00 Cost of goods sold 960.00 Gross margin 640.00 Selling and administrative expenses 620.00 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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