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Help please! Joyner Company's income statement for Year 2 follows: $ 709,000 329,000 380,000 217,000 163,000 Sales Cost of goods sold Gross margin Selling and
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Joyner Company's income statement for Year 2 follows: $ 709,000 329,000 380,000 217,000 163,000 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 10,000 173,000 51,900 $ 121,100 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year i 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 $ 66,200 258,000 319,000 10,500 653,700 634,000 166,200 467,800 47,000 $1,168,500 $ 53,500 139,000 288,000 21,000 501,500 506,000 131, 100 374,900 $876,400 $ 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 311,000 47,000 84,400 442,400 195,000 637,400 345,000 186,100 531,100 $250,000 57,000 80,400 387,400 109,000 496,400 283,000 97,000 380,000 Equipment that had cost $31,500 and on which there was accumulated depreciation of $10,400 was sold during Year 2 for $31,100. 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 2Step by Step Solution
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