Joyner Company has provided the following spreadsheet containing the balances in its balance sheet accounts for year 1 and year 2:

	Year 2			Year 1
Debit Balance Accounts
Cash	$	4,000		$	21,000
Accounts receivable		250,000			170,000
Inventory		300,000			250,000
Prepaid expenses		7,000			14,000
Loan to Hymas Company		40,000
Plant and equipment		510,000			400,000
Total debits	$	1,121,000		$	855,000
Credit Balance Accounts
Accumulated depreciation	$	132,000		$	120,000
Accounts payable		310,000			250,000
Accrued liabilities		20,000			30,000
Bonds payable		190,000			70,000
Deferred income taxes		45,000			42,000
Common shares		300,000			270,000
Retained earnings		124,000			83,000
Total credits	$	1,121,000		$	855,000

The companys income statement for year 2 follows:

Sales	$	900,000
Less: Cost of goods sold		500,000
Gross margin		400,000
Less: Operating expenses		328,000
Net operating income		72,000
Gain on sale of equipment		8,000
Income before taxes		80,000
Less: Income taxes		24,000
Net income	$	56,000

Equipment that had cost $40,000 and on which there was accumulated depreciation of $30,000 was sold during year 2 for $18,000. Cash dividends totalling $15,000 were declared and paid during year

Required: 1. Using the indirect method, compute the net cash for operating activities for Year 2. (Negative amount should be indicated by a minus sign.)

2. Prepare a cash flow statement for year 2. (List any deduction in cash and cash outflows as negative amounts.)

3. This part of the question is not part of your Connect assignment.

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