Says it is incomplete, can not solve the last few gaps Comparative financial statement data for Carmono Company follow:This YearLast YearAssets$ 6CashAccounts receivable32224InventoryTotal current assetsProperty, plant, and equipmentLess accunulated depreciationNet property, plant, and equipnent5e4075702402ee65se175150Tatal assets$ 250$ 220Liabilities and Stockholders' EquityAccounts payableConmon stockRetained earnings$ 40$ 3615014539Total liabilities and stockholders' equity$ 250$ 220For this year, the company reported net income as follows:SalesCost of goods soldGross narginSelling and adrinistrative expenses$ 27515012590Net incone$ 35This year Cormono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. Thecompany did not repurchase any of its own stock this year.Required:Using the direct method, convert the company's income statement to a cash basis. (Adjustment amounts that are to be deductedshould be Indicated with a mlnus sign.)Carmono CompanyDirect Method of Determining the Net Cash flows from Operating activitlesSales275Adjustments to a cash basis:Decrease in accounts receivable2277Cast af goods sold150Adjustments to a cash basis:Increase in accounts payable(4)Increase in inventory10156Selling and administrative expenses90Adjustments to a cash basis:9031

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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash 3 6 Accounts receivable Inventory Total current assets 22 24 se 48 75 70 Property, plant, and equipment Less accurulated depreciation 240 2ee 65 5e Net property, plant, and equipnent 175 150 Tatal assets $ 250 $ 220 Liabilities and Stockholders' Equity Accounts payable $ 40 $ 36 Conmon stock 150 145 Retained carnings 39 Total liabilities and stockholders' equity $ 250 $ 220 For this year, the company reported net income as follows: Sales $ 275 Cost of goods sold Gross nargin Selling and adrinistrative expenses 150 125 98 Net incone $ 35 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: Using the direct method, convert the company's income statement to a cash besis. (Adjustment amounts that are to be deducted should be Indicated with a minus sign.)

Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash 3 6 Accounts receivable Inventory Total current assets 22 24 se 48 75 70 Property, plant, and equipment Less accurulated depreciation 240 2ee 65 5e Net property, plant, and equipnent 175 150 Tatal assets $ 250 $ 220 Liabilities and Stockholders' Equity Accounts payable $ 40 $ 36 Conmon stock 150 145 Retained carnings 39 Total liabilities and stockholders' equity $ 250 $ 220 For this year, the company reported net income as follows: Sales $ 275 Cost of goods sold Gross nargin Selling and adrinistrative expenses 150 125 98 Net incone $ 35 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: Using the direct method, convert the company's income statement to a cash besis. (Adjustment amounts that are to be deducted should be Indicated with a minus sign.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 75E

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