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Comparative financial statement data for Carmono Company follow: This Year Last Year Assets $6.00 44.00 $ 11.00 37.00 71.40 119.40 Cash Accounts receivable 85.00 135.00 222.00 Inventory Total current asseta Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipnent 188.00 32.40 43.20 178.80 $ 313.80 155.60 $ 275.00 Total assets Liabilities and Stockholders Equity Accounts payable $ 51.00 106.00 $ 43.00 82.00 150.00 Common stock Retained earnings Total liabilities and stockholders equity 156.80 $ 313.80 $ 275.00 For this year, the company reported net income as follows: $ 700.00 420.00 Sales Cost of goods sold 280.00 Gross margin 260.00 Selling and administrative expenses $ 20.00 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: 1. Using the indirect method, prepare a statement of cash flows for this year. 2. Compute Carmono's free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) ree cash flow

Comparative financial statement data for Carmono Company follow: This Year Last Year Assets $6.00 44.00 $ 11.00 37.00 71.40 119.40 Cash Accounts receivable 85.00 135.00 222.00 Inventory Total current asseta Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipnent 188.00 32.40 43.20 178.80 $ 313.80 155.60 $ 275.00 Total assets Liabilities and Stockholders Equity Accounts payable $ 51.00 106.00 $ 43.00 82.00 150.00 Common stock Retained earnings Total liabilities and stockholders equity 156.80 $ 313.80 $ 275.00 For this year, the company reported net income as follows: $ 700.00 420.00 Sales Cost of goods sold 280.00 Gross margin 260.00 Selling and administrative expenses $ 20.00 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: 1. Using the indirect method, prepare a statement of cash flows for this year. 2. Compute Carmono's free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) ree cash flow

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 24CE
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Comparative financial statement data for Carmono Company follow: Thin Year Last Year Asseta $ 11.00 37.00 71.40 119,40 188.00 Cash Accounts receivable Inventory $6.00 44.00 85.00 Total current asseta Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipnent 135.00 222.00 43.20 178.80 $ 313.80 32.40 155.60 $ 275.00 Total aBsete Liabilities and Stockholders Equity Accounta payable $ 51.00 106.00 $43.00 82.00 150.00 Common stock Retained earnings Total liabilities and stockholders equity 156.80 $ 313.80 $275.00 For this year, the company reported net income as follows: $700.00 Sales 420.00 Cost of goods sold Grosa margin Selling and administrative expenses 280.00 260.00 $ 20.00 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: 1. Using the indirect method, prepare a statement of cash flows for this year, 2. Compute Carmono's free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) Free cash flow Required 1 Required 2 >
Transcribed Image Text:Comparative financial statement data for Carmono Company follow: Thin Year Last Year Asseta $ 11.00 37.00 71.40 119,40 188.00 Cash Accounts receivable Inventory $6.00 44.00 85.00 Total current asseta Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipnent 135.00 222.00 43.20 178.80 $ 313.80 32.40 155.60 $ 275.00 Total aBsete Liabilities and Stockholders Equity Accounta payable $ 51.00 106.00 $43.00 82.00 150.00 Common stock Retained earnings Total liabilities and stockholders equity 156.80 $ 313.80 $275.00 For this year, the company reported net income as follows: $700.00 Sales 420.00 Cost of goods sold Grosa margin Selling and administrative expenses 280.00 260.00 $ 20.00 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: 1. Using the indirect method, prepare a statement of cash flows for this year, 2. Compute Carmono's free cash flow for this year. Complete this question by entering your answers in the tabs below. Required 1 Required Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.) Free cash flow Required 1 Required 2 >
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