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Here are the options; Adjustments to convert contribution margin to a cash basis: Adjustments to convert gross margin to a cash basis: Adjustments to convert
Here are the options;
- Adjustments to convert contribution margin to a cash basis:
- Adjustments to convert gross margin to a cash basis:
- Adjustments to convert net income to a cash basis:
- Adjustments to convert sales to a cash basis:
Problem 15-10 (Algo) Prepare a Statement of Cash Flows; Free Cash Flow [LO15-1, LO15-2, LO15-3] 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 $42,000 and on which there was accumulated depreciation of $33,000 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. Requlred: 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 . 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.)
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