90.2K

Verified Solution

Link Copied!

Problem 12-7A The following are the financial statements of Tamarisk, Inc.. Tamarisk, Inc. Comparative Balance Sheets December 31 Assets 2019 Cash $36,300 Accounts receivable 32,900 Inventory 30,800 Equipment 59,900 Accumulated depreciation equipment (29,300) Total $130,600 2018 $19,000 19,900 20,300 77,400 (23,300) $113,300 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $28,400 7,000 27,800 17,800 49,600 $130,600 $16,600 8,100 32,000 14,300 42,300 $113,300 Tamarisk, Inc. Income Statement For the Year Ended December 31, 2019 Sales revenue $242,000 Cost of goods sold 176,500 Tamarisk, Inc. Income Statement For the Year Ended December 31, 2019 Sales revenue $242,000 Cost of goods sold 176,500 Gross profit 65,500 Operating expenses 23,100 Income from operations 42,400 Interest expense 2,500 Income before income taxes 39,900 Income tax expense 8,400 Net income $31,500 Additional data: 1. Dividends declared and paid were $24,200 2. During the year, equipment was sold for $9,600 cash. This equipment cost $17,500 originally and had a book value of $9,600 at the time of sale. 3. All depreciation expense, $13,900, is in the operating expenses. 4. All sales and purchases are on account. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign ..-15.000 or in pak Tamarisk, Inc. Statement of Cash Flows Prepare a statement of cash flows using the indirect method. (Show amounts that decreas Tamarisk, Inc. Statement of Cash Flows Adjustments to reconcile net income to Compute free cash flow. Free cash flows Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO TEXT

Answer & Explanation Solved by verified expert

See Answer