Verizon LTE 7:00 PM ezto.mheducation.com 3. 10.00 points Comparative financial s

Question

Verizon LTE 7:00 PM ezto.mheducation.com 3. 10.00 points Comparative financial statement data for Carmono Company follow: 65 propey plant and equpment S40 For this year, the company reported net income as follows 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 indirect method, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts

Explanation / Answer

Prepare operating activities indirect method :

Statement of cash flow :

c) Free cash flow = Net cash flow from operating activities-purchase of equipment

                          = (46-40)

Free cash flow = 6

Cash flow from operating activities Net income 35 Adjustment to reconcile net income Depreciation 15 Decrease account receivable 2 Increase inventory (10) Increase account payable 4 Net cash flow from operating activities 46

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.