Details:

Complete "Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow" in chapter 14 of Managerial Accounting. Present your responses in an Excel spreadsheet.

Managerial Accounting

Read chapter 14.

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JOYNER COMPANY STATEMENT OF CASH FLOWS For Year 2 #2: Prepare a statement of Cash Flow for Year 2 Operating activities: Net Income...................................................................... Adjustments to convert net income to cash basis: Depreciation charges................................................... Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in account payable Decrease in accrued liabilities Gain on sale of equipment Increase in deferred income taxes Net cash provided by operating activities. - Investing activities: Proceed from sale of equipment Loan to Hymas company Additions to plant and equipment Net cash used for investing activities - Financing activities: Increase in bonds payable Increase in common stock Cash dividends Net cash used for investing activities - Net decrease in Cash - Does the variance between these cell G31? If so , your cash flow Cash balance at beginning of year Cash balance at end of year 3.) Free Cash Flow computation: Net Cash provided by operating activities Capital expenditures Dividends Free Cash Flow see above - 4.) "Don't forget to answer the question" #1 of the problem states to complete the "Indirect Method" for Cash from Operations. You DO NOT have to complete this, Only #2, #3, and #4 Instructor Hint: The chapter is a great resource to walk thru examples. LO14-2, and pages 644-649 goes over a problem very similar to this and walks thru each account and how to reflect the changes on the cash flow statement. I would recommend you use this example problem in your text as your guide to completing the Joyner problem Does the variance between these numbers equal cell G31? If so , your cash flow is correct