Carmono CompanyDirect Method of Determining the Net Cash flows from Operating activitiesAdjustments to a cash basis:0Adjustments to a cash basis:0Selling and administrative expensesAdjustments to a cash basis:00FA$ Comparative financial statement data for Carmono Company follow:This Year Last YearAssetsCash$3$ 6Accounts receivable2224Inventory5040Total current assets75702402006550Property, plant, and equipmentLess accumulated depreciationNet property, plant, and equipmentTotal assets175150$ 250$ 220Liabilities and Stockholders' EquityAccounts payable$ 40$36Common stock150145Retained earnings6039Total liabilities and stockholders' equity$ 250$ 220For this year, the company reported net income as follows:SalesCost of goods sold.Gross marginSelling and administrative expensesNet incomeThis year Carmono 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 minus sign.)$27522|35|2|150125$35

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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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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