Comparative financial statement data for Carmono Company follow: This Year Last Year Assets Cash $ 3 $ 6 Accounts receivable 22 24 Inventory 50 40 Total current assets 75 70 Property, plant, and equipment 240 200 65 50 Less accumulated depreciation Net property, plant, and equipment Total assets 175 150 $250 $ 220 Liabilities and Stockholders' Equity Accounts payable Common stock $40 $36 150 145 Retained earnings 60 39 Total liabilities and stockholders' equity $ 250 $ 220 For this year, the company reported net income as follows: Sales $ 275 Cost of goods sold 150 Gross margin 125 90 Selling and administrative expenses Net income $ 35 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 direct method, convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Carmono Company Direct Method of Determining the Net Cash flows from Operating activities Sales $ 275 Adjustments to a cash basis: Increase in accounts receivable 24 299 Adjustments to a cash basis: 0 Selling and administrative expenses Adjustments to a cash basis: Depreciation 15 284 15 $ $ Carmono Company Direct method of determining Net Cash flow from Operating Activities Cash received from customers Sales Adjustment to cash basis: Add: Opening Accounts Receivables Less: Closing Accounts Receivables Less: Cash paid to suppliers: Purchases Add: Opening Accounts Payables Less: Closing Accounts Payables Less: Selling & Administrative Expenses: Adjustment to cash basis: Less: Depreciation for the year Net Cash from from Operating Activities $ 275 $24 $ (22) $ 160 $36 $ (40) $ 90 $ (15) $ 277 $ (156) $ (75) $ 46