Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. comparative financial statement data for carmono c

Comparative financial statement data for Carmono Company follow: ...

90.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students