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Humber included in Brock's statement of cash flows. PROBLEM 13-10 Prepare a Statement of Cash Flows; Free Cash Flow LO13-1, LO13-2, LO13-3 Joyner Company's
Humber included in Brock's statement of cash flows. PROBLEM 13-10 Prepare a Statement of Cash Flows; Free Cash Flow LO13-1, LO13-2, LO13-3 Joyner Company's income statement for Year 2 follows: 1:31 Sales. Cost of goods sold Gross margin Selling and administrative expenses Net operating income.... Nonoperating items: Gain on sale of equipment $900,000 500,000 400,000 328,000 Preview 72,000 8,000 80,000 24,000 $ 56,000 Income before taxes Income taxes Net income 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 $ 4,000 250,000 $ 21,000 170,000 Inventory 310,000 260,000 Prepaid expenses 7,000 14,000 Total current assets 571,000 465,000 Property, plant, and equipment 510,000 400,000 Less accumulated depreciation 132,000 120,000 Net property, plant, and equipment 378,000 280,000 Loan to Hymans Company. 40,000 0 Total assets $989,000 $745,000 Liabilities and Stockholders' Equity Accounts payable $310,000 $250,000 Accrued liabilities 20,000 30,000 Income taxes payable. 45,000 42,000 Total current liabilities 375,000 322,000 Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $989,000 $745,000 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. 190,000 70,000 565,000 392,000 300,000 270,000 124,000 83,000 424,000 353,000 15 intel iRIS GRAPHICS Chapter 13
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