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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $3 $6 Accounts receivable 22 24 Inventory 50 40 Total current assets. 75 70 240 200 65 50 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets 175 150 $250 $ 220 Liabilities and Stockholders' Equity Accounts payable Common stock $ 40 $36 150 145 Retained earnings 60 39 Total liabilities and stockholders' equity $250 $ 220 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income 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 basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) *233* $ 275 150 125 90 $ 35

Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $3 $6 Accounts receivable 22 24 Inventory 50 40 Total current assets. 75 70 240 200 65 50 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets 175 150 $250 $ 220 Liabilities and Stockholders' Equity Accounts payable Common stock $ 40 $36 150 145 Retained earnings 60 39 Total liabilities and stockholders' equity $250 $ 220 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net income 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 basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) *233* $ 275 150 125 90 $ 35

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 52P: Balance sheets for Brierwold Corporation follow: Additional transactions were as follows: a....
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Carmono Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: 0 Adjustments to a cash basis: 0 Selling and administrative expenses Adjustments to a cash basis: 0 0 FA $
Transcribed Image Text:Carmono Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: 0 Adjustments to a cash basis: 0 Selling and administrative expenses Adjustments to a cash basis: 0 0 FA $
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $3 $ 6 Accounts receivable 22 24 Inventory 50 40 Total current assets 75 70 240 200 65 50 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets 175 150 $ 250 $ 220 Liabilities and Stockholders' Equity Accounts payable $ 40 $36 Common stock 150 145 Retained earnings 60 39 Total liabilities and stockholders' equity $ 250 $ 220 For this year, the company reported net income as follows: Sales Cost of goods sold. Gross margin Selling and administrative expenses Net income 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 basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) $275 22|35|2| 150 125 $35
Transcribed Image Text:Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $3 $ 6 Accounts receivable 22 24 Inventory 50 40 Total current assets 75 70 240 200 65 50 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets 175 150 $ 250 $ 220 Liabilities and Stockholders' Equity Accounts payable $ 40 $36 Common stock 150 145 Retained earnings 60 39 Total liabilities and stockholders' equity $ 250 $ 220 For this year, the company reported net income as follows: Sales Cost of goods sold. Gross margin Selling and administrative expenses Net income 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 basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) $275 22|35|2| 150 125 $35
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