CH.12 #4

Joyner Company's income statement for Year 2 follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Equipment that had cost $30, 600 and on which there was accumulated depreciation of $11, 800 was sold during Year 2 for $26, 800 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: Using the indirect method, compute the net cash for operating activities for Year 2. Prepare a statement of cash flows for Year 2. Compute the free cash flow for Year 2