Comparative financial statement data for Carmono Company follow:
This Year | Last Year | ||||
Assets | |||||
Cash and cash equivalents | $ | 14.00 | $ | 27.00 | |
Accounts receivable | 76.00 | 69.00 | |||
Inventory | 125.00 | 113.00 | |||
Total current assets | 215.00 | 209.00 | |||
Property, plant, and equipment | 270.00 | 220.00 | |||
Less accumulated depreciation | 56.00 | 42.00 | |||
Net property, plant, and equipment | 214.00 | 178.00 | |||
Total assets | $ | 429.00 | $ | 387.00 | |
Liabilities and Stockholders’ Equity | |||||
Accounts payable | $ | 75.00 | $ | 59.00 | |
Common stock | 170.00 | 130.00 | |||
Retained earnings | 184.00 | 198.00 | |||
Total liabilities and stockholders’ equity | $ | 429.00 | $ | 387.00 | |
For this year, the company reported net income as follows:
Sales | $ | 1,500.00 |
Cost of goods sold | 900.00 | |
Gross margin | 600.00 | |
Selling and administrative expenses | 580.00 | |
Net income | $ | 20.00 |
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.
|
|
Carmono Company | ||
Statement of Cash Flows | ||
For This Year Ended December 31 | ||
Operating activities: | ||
Net income | 20.00 | |
Adjustments to convert net income to a cash basis: | ||
Depreciation | 14.00 | |
Increase in accounts receivable | (7.00) | |
Increase in inventory | (12.00) | |
Increase in accounts payable | 16.00 | |
11.00 | ||
Net cash provided by Operating activities | 31.00 | |
Investing activities: | ||
Increase in Plant and equipment | (50.00) | |
Net cash used in Investing activities | (50.00) | |
Financing activities: | ||
Cash dividends | (34.00) | |
Increase in Common Stock | 40.00 | |
Net cash provided by Financing activities | 6.00 | |
Net decrease in cash | (13.00) | |
Beginning cash and cash equivalents | 27.00 | |
Ending cash and cash equivalents | 14.00 | |
2 | ||
Net cash provided by Operating activities | 31.00 | |
Increase in Plant and equipment | (50.00) | |
Cash dividends | (34.00) | =184-(198+20) |
Free cash flow | (53.00) |
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash and cash...
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 14.00 $ 27.00 Accounts receivable 76.00 69.00 Inventory 125.00 113.00 Total current assets 215.00 209.00 Property, plant, and equipment 270.00 220.00 Less accumulated depreciation 56.00 42.00 Net property, plant, and equipment 214.00 178.00 Total assets $ 429.00 $ 387.00 Liabilities and Stockholders’ Equity Accounts payable $ 75.00 $ 59.00 Common stock 170.00 130.00 Retained earnings 184.00 198.00 Total liabilities and stockholders’ equity $ 429.00 $...
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 14.00 $ 27.00 Accounts receivable 76.00 69.00 Inventory 125.00 113.00 Total current assets 215.00 209.00 Property, plant, and equipment 270.00 220.00 Less accumulated depreciation 56.00 42.00 Net property, plant, and equipment 214.00 178.00 Total assets $ 429.00 $ 387.00 Liabilities and Stockholders’ Equity Accounts payable $ 75.00 $ 59.00 Common stock 170.00 130.00 Retained earnings 184.00 198.00 Total liabilities and stockholders’ equity $ 429.00 $...
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 4.50 $ 8.00 Accounts receivable 38.00 31.00 Inventory 77.50 63.60 Total current assets 120.00 102.60 Property, plant, and equipment 213.00 182.00 Less accumulated depreciation 40.80 30.60 Net property, plant, and equipment 172.20 151.40 Total assets $ 292.20 $ 254.00 Liabilities and Stockholders’ Equity Accounts payable $ 46.50 $ 40.00 Common stock 94.00 73.00 Retained earnings 151.70 141.00 Total liabilities and stockholders’ equity $ 292.20 $...
Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash and cash equivalents Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 13.00 72.00 120.00 205.00 264.00 54.40 209.60 $414.60 $ 25.00 65.00 107.80 197.80 216.00 40.80 175.20 $373.00 $ 72.00 162.00 180.60 $414.60 $ 57.00 124.00 192.00 $373.00...
Comparative financial statement data for Carmono Company follow: This Year Last Year $ 3 $ 6 24 50 Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 240 65 175 $ 250 40 70 200 50 150 $ 220 $ 36 $ 40 150 60 145 39 $ 250 $ 220 For...
Comparative financial statement data for Carmono Company follow. This Year Last Year $ 3 5 6 24 200 Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 150 $ 220 $ 36 $250 $ 2 For this year, the company reported net income as follows: Sales Cost of goods sold Gross margin...
Comparative financial statement data for Carmono Company follow. This Year Last Year AssetS $ 11.50 66.00 112.50 190.00 255.00 52.00 203.00 $393.00 $ 22.00 59.00 100.00 181.00 210.00 39.00 171.00 $352.00 Accounts receivable Inventory Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 67.50 150.00 175.50 $393.00 $ 54.00 115.00 183.00 $352.00 For this year, the company...
Comparative financial statement data for Carmono Company follow This Year Last Year Assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment $6.50 12.00 39.00 74.00 125.00 198.80 33.00 46.00 87.50 140.00 225.00 44.00 Less accumulated depreciation Net property, plant, and equipment Total assets 181.0 157.e0 $321.00 $282.00 Liabilities and Stockholders' Equity Accounts payable Common stock Retained, earnings Total liabilities and stockholders' equity $321.00 $ 52.50 44.00 110.00 158.50 85.00 153.00 $282.00 We were unable to transcribe this...
Comparative Balance Sheet This Year Last Year Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expense:s $61,000 $ 40,00e 530,000 860,00e 5,000 1,629,000 1,435,000 3,170,000 2,600,00e 755,000 2,360,000 1,845,000 110,000 170,000 $4,263,000 $3,560,006e 710,000 848, 000 10,000 Total current assets Property, plant, and equipment Less accumulated depreciation 810,00e Net property, plant, and equipment Long-term investments Loans to subsidiaries Total assets 60,000 214,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 970,000...
Weaver Company Comparative Balance Sheet at December31 Last This Year Year Assets Cash Accounts receivable Inventory Prepaid expense:s Total current assets Property, plant, and equipment $9 15 240 175 6 436 470 85 385 19 $1,017 840 340 125 10 484 610 93 517 16 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total...