Please ANSWER ALL. PLEASE.. Help me understand Comparative financial statement d
ID: 2477726 • Letter: P
Question
Please ANSWER ALL. PLEASE..
Help me understand
Comparative financial statement data for Carmono Company follow. 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. Round your intermediate calculations and final answers to 2 decimal places.) Compute Carmonos 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.) For the just completed year. Hanna Company had net income of $77,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows: The Accumulated Depreciation account had total credits of $46,000 during the year. Hanna Company did not record any gains or losses during the year. Required: Use the indirect method to determine the net cash provided by (or used in) operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.) Apex Company prepared the statement of cash flows for the current year that is shown belowExplanation / Answer
Cash flow statementr has been divided into three parts
operating activities record increase or decrease in cash as a result of activities such as purchase , sale . It is adjusted for any non cash expense like depreciation , any blockage of money in current asset , example increase in inventory, and for any reduction in cash commitment example reduction in accounts payable
Investing activities will identify cash effect on account of asset purchase and sold, income from investment etc.
Financing activities means all activities related to raising of finance or disbursement of debt, also costs related to financing are dealt in financing activities
Cash flow from operating activities Amount Net Income 20 Adjustment to conver net income to cash basis Depreciation expense (64-48) 16 ( Current year accumulated- Previous year accumulated) Increase in Accounts receivable (96-89) -7 Increase in Inventory ( 150-139) -11 Increase in Accounts payable ( 90-69) 21 Net Cash flow from operating activities - A 39 Cash flow from investing activities Increase in PPE ( 300-240) -60.00 Net Cash flow from investing activities - B -60 Cash flow from financing activities Dividend paid ( refer note) -47 Issue of common stock ( 210-160) 50 Net Cash flow from financing activities - C 3.00 Net Increase in cash and cash equivalent ( A+ B +C) -18 Cash and cash equivalent at beginning 37 Cash and cash equivalent at end 19 Note Dividend paid is calculated as Retained earnings at end 201 Less: Net Income for current year 20 Retained earnings before Net Income 181 Retained earnings at beginning 228 Less: Retained earnings before Net Income 181 Dividend declared 47