data for $ 16.80$ 31.00 7.88 123.40 231.40 228.88 44.40 183.60 receivable 84.00

ID: 2433167 • Letter: D

Question

data for $ 16.80$ 31.00 7.88 123.40 231.40 228.88 44.40 183.60 receivable 84.00 35.8 235.e0 282.08 59.20 222.88 $457.88 o5 Total , plant, and equipment Less accumulated depreciation Total assets Liabilities and Stockholders Equity $415.00 186.80 198.88218-0 $457.88 SASS s 81. 63.00 142.00 210.80 Total liabilities and stockholders equity $415.00 For this year, the company reported net income as follows: Cost of goods sold Gross margin Selling and administrative expenses $1,700.08 1,020.03 688.00 660.00 s 20.0e 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

Explanation / Answer

(1) Statement of Cash Flows :-

Operating Activities :-

Net Income

Adjustment to reconcile Operating activities to cash basis :-

Depreciation (59.20 – 44.40)

14.80

Increase A/c Receivable

-7

Increase Inventory

-11.60

Increase A/c Payable

Total cash flow from Operating Activities (A)

34.2

Investing Activities :-

Purchase PPE

-54

Total cash flow from Investing Activities (B)

-54

Financing Activities :-

Paid Cash Dividend (210 + 20 – 190.80)

-39.2

Issue common stock

Total cash flow from Financing Activities (C)

4.8

Net Cash Flow (A+B+C)

-15

Beginning cash Balance

Ending Cash Balance

(2) Free Cash Flow = Cash flow from Operating Activities – Cap Exp

= 34.2 – 54 = -19.8