Chapter 15 - Homework Problems Saved Help Save & Exit Submit Check my work 3 Joyner Company's income statement for Year 2 follows: 10 points $ 900,000 500,000 400,000 328,000 72,000 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 8,000 80,000 24,000 $ 56,000 eBook Print Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 References $ 4,000 250,000 310,000 7,000 571,000 510,000 132,000 378,000 40,000 $989,000 $ 21,000 170,000 260,000 14,000 465,000 400,000 120,000 280,000 0 $ 745,000 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 $310,000 20,000 45,000 375,000 190,000 565,000 300,000 124,000 424,000 $989,000 $250,000 30,000 42,000 322,000 70,000 392,000 270,000 83,000 353,000 $ 745,000 Check my work 3 Equipment that had cost $40,000 and on which there was accumulated depreciation of $30,000 was sold during Year 2 for $18,000. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. 10 points 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. eBook Required 1 Required 2 Required 3 Print 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.) References Joyner Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable 0 Net cash used in operating activities $ 0 Recuir Recuired2 Required 1 Required 2 Required 3 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 $ 0 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
