managerial accounting 431854
Aug 29, 2021 | Uncategorized
| |
December 31
|
|
This Year |
Last Year |
| Assets |
|
|
| Cash |
$ |
9.50 |
$ |
18.00 |
| Accounts receivable |
|
58.00 |
|
51.00 |
| Inventory |
|
102.50 |
|
89.60 |
|
|
|
|
|
| Total current assets |
|
170.00 |
|
158.60 |
|
|
|
|
|
| Property, plant, and equipment |
|
243.00 |
|
202.00 |
| Less accumulated depreciation |
|
48.80 |
|
36.60 |
|
|
|
|
|
| Net property, plant, and equipment |
|
194.20 |
|
165.40 |
|
|
|
|
|
| Total assets |
$ |
364.20 |
$ |
324.00 |
|
|
|
|
|
| Liabilities and Stockholders%u2019 Equity |
|
|
|
|
| Accounts payable |
$ |
61.50 |
$ |
50.00 |
| Common stock |
|
134.00 |
|
103.00 |
| Retained earnings |
|
168.70 |
|
171.00 |
|
|
|
|
|
| Total liabilities and stockholders%u2019 equity |
$ |
364.20 |
$ |
324.00 |
|
|
|
|
|
|
| For this year, the company reported net income as follows: |
|
|
|
| Sales |
$ |
1,050.00 |
| Cost of goods sold |
|
630.00 |
|
|
|
| Gross margin |
|
420.00 |
| Selling and administrative expenses |
|
400.00 |
|
|
|
| Net income |
$ |
20.00 |
|
|
|
|
|
This year Holly declared and paid a cash dividend. There were no sales of 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. (Amounts to be deducted should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” sign in your response.)
|
Holly Company
Statement of Cash Flows
For This Year Ended December 31 |
| Operating activities: |
|
|
|
|
$ |
| Adjustments to convert net income to a cash basis: |
|
|
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash operating activities |
|
|
| Investing activities: |
|
|
|
|
|
|
|
|
| Net cash investing activities |
|
|
| Financing activities: |
|
|
|
|
` |
|
|
|
|
|
|
| Net cash financing activities |
|
|
|
|
|
|
|
|
| Cash, December 31 of last year |
|
|
|
|
|
| Cash, December 31 of this year |
|
$ |
|
|
|
|
| 2. |
Compute Holly%u2019s 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. Omit the “$” sign in your response.)
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