I am missing something in my statement of cash flows and I cant figure out what. thanks!
Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold $ 900,000 500,000 Gross margin Selling and administrative expenses 400,000 328,000 Net operating income Gain on sale of equipment 72,000 8,000 Income before taxes Income taxes 80,000 24,000 Net income $ 56,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: $ Assets Cash Accounts receivable Inventory Prepaid expenses Year 2 4,000 250,000 310,000 7,000 Year 1 $ 21,000 170,000 260,000 14,000 Total current assets 571,000 465,000 Property, plant, and equipment Less accumulated depreciation 510,000 132,000 400,000 120,000 Net property, plant, and equipment 378,000 280,000 Property, plant, and equipment Less accumulated depreciation 510,000 132.000 400,000 120.000 Net property, plant, and equipment 378,000 280,000 Loan to Hymans Company 40,000 Total assets $ 989,000 $ 745,000 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable $ 310,000 20,000 45,000 $250,000 30,000 42,000 Total current liabilities Bonds payable 375.000 190,000 322,000 70,000 Total liabilities 565,000 392,000 Common stock Retained earnings 300,000 124,000 270,000 83,000 Total stockholders' equity 424,000 353,000 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 2. Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) | $ 56,000 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in accrued liabilities Decrease in prepaid expenses Increase in accounts payable Increase in income taxes payable 42,000 (8,000) (80,000) (50,000) (10,000) 7,000 60,000 3,000 (36.000) Answer is not complete. 56,000 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Net income Adjustments to convert net income to cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in accrued liabilities Decrease in prepaid expenses Increase in accounts payable Increase in income taxes payable 42,000 (8,000) (80,000) (50,000) (10,000) 7,000 60,000 3,000 (36,000) 20,000 Net cash provided by operating activities Investing activities: Additions to plant and equipment Proceeds from sale of equipment Loan to Hymans Company (150,000) 18,000 (40,000) (172,000) Net cash used in investing activities Financing activities: Issuance of bonds payable Cash dividends 120,000 (15,000) Net cash provided by financing activities Net decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents 105,000 (47,000) 21,000 (26,000) $
