Comparative financial statement data for Carmono Company follow: This year Carmo

Question

Comparative financial statement data for Carmono Company follow:

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.

Using the indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts. Round your intermediate calculations and final answers to 2 decimal places.)

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.)

Comparative financial statement data for Carmono Company follow:

Explanation / Answer

Amount($)

..

Part-2)

Carmono’s free cash flow for this year = Cash Flow from Operations - Capital Expenditure

= 19-35

= -$16 ..Ans

Particulars Amount($)

Amount($)

Cash Flow from Operating Activities Net Income 20 Add:-Depreciation(44-33) 11 Adjustment for Working Capital Changes Less:-Increase in Accounts receiavble(46-39) (7) Less:-Increase in Inventory (87.50-74) (13.50) Add:-Increase in Accounts Payable (52.5-44) 8.5 19 Cash Flow from Investing Activities Purcahase of Property,Plant & Equipment (225-190) (35) (35) Cash Flow from Finacing Activities Dividend Paid During the year(153+20-158.50) (14.50) Issue of Common Stock (110-85) 25 10.5 Net Cash OUTlfow during the year (5.5) Add:-Opening Cash Balance 12 Closing Cash Balance (Tallied) 6.5

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