Ch. 15 HW Saved Saved 2 119, Vuu 593,000 150,200 442,800 cost or gooas sola Gross margin Selling and administrative expenses Net operating income Nonoperating items : Gain on sale of equipment Income before taxes Income taxes Net income 13 points 6,000 448,800 134,640 $ 314,160 eBook Print Its balance sheet amounts at the end of Years 1 and 2 are as follows: References Year 2 Year 1 $ 294,860 230,000 318,000 8,500 851,360 628,000 165,100 462,900 45,000 $1,359, 260 $ 73,800 122,000 286,000 17,000 498,800 518,000 131,900 386,100 0 $884,900 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 315,000 45,000 85,200 445,200 203,000 648,200 338,000 373,060 711,060 $1,359,260 $ 262,000 59,000 80,900 401,900 113,000 514,900 277,000 93,000 370,000 $884,900 Equipment that had cost $31,000 and on which there was accumulated depreciation of $10,900 was sold during Year 2 for $26,100. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Required: 1. Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partial) Net income $ 314,160 Adjustments to convert net income to a cash basis: Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Gain on sale of equipment Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable $ (108,000) (32,000) 8,500 (6,000) 53,000 (14,000) 4,300 Depreciation (94,200) 219,960 Required 1 Required 2 >