chapter 13 question 3

Joyner Company's income statement for Year 2 follows: $ 704,000 95,000 609,000 151,800 457,200 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 5,000 462,200 184,880 $ 277,320 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents 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 $ 240,920 229,000 319,000 8,500 797,420 638,000 166,900 471,100 42,000 $1,319,520 $ 57,200 134,000 285,000 17,000 493,200 510,000 130.600 379,400 $872,600 $ 315,000 41,000 84, 100 440.100 $ 253,000 51,000 81.600 385.600 Year 2 Year Assets Cash and cash equivalents 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 $ 240,92e 229,000 319,000 8,500 797,420 638,000 166,900 471 100 42,000 $1,310,520 $ 57,200 134,000 285,000 17,000 493,200 510,000 130,600 379, 409 $872,600 $ 315,000 41,000 84,100 440,100 199,000 639, 100 334,000 337/420 671,420 1,319,520 5 253,000 51,000 81,600 385,6ee 119,000 504,600 277.000 91,000 368,000 $ 822,600 Equipment that had cost $30,400 and on which there was accumulated depreciation of $11.400 was sold during Year 2 for $24.000 The company declared and paid a cosh 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 Meldus 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) 0 0 $ Rotu Required 2 > essment i Saved Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities Investing activities 0 Financing activities 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow