60.1K

Verified Solution

Link Copied!

prepare a statement of cash flows using the jndirect method. compute free cash flow.

Presented below are the financial statements of Coronado Industries. Coronado Industries Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 85,750 $49,000 Accounts receivable 49,000 34,300 Inventory 68,600 49,000 Property, plant, and equipment 147,000 191,100 Accumulated depreciation (78,400) (58,800) $271,950 $264,600 Total Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings Total $ 46,550 $36,750 17,150 19,600 41,650 80,850 44,100 34,300 122,500 93.100 $271.950 $264,600 Coronado Industries Income Statement For the Year Ended December 31, 2017 Sales revenue $592,900 Cost of goods sold 428,750 Gross profit 164,150 Selling expenses $44,100 Administrative expenses 14,700 58,800 Income from operations 105,350 Interest expense 7,350 Income before income taxes 98,000 Income tax expense 19,600 Net income $ 78,400 Additional data: 1. Depreciation expense was $42,875. 2. Dividends declared and paid were $49,000 3. During the year equipment was sold for $20,825 cash. This equipment cost $44,100 originally and had accumulated depreciation of $23,275 at the time of sale. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesis es (15,000 Coronado Industries Statement of Cash Flows Adjustments to reconcile net income to

Answer & Explanation Solved by verified expert

See Answer