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Joyner Company s income statement for Year 2 follows: Sales $ 7 1 5 , 0 0 0 Cost of goods sold 3 3 2
Joyner Companys income statement for Year follows: 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 $ Its balance sheet amounts at the end of Years and are as follows: Year Year 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 $ $ 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 $ $ Equipment that had cost $ and on which there was accumulated depreciation of $ was sold during Year for $ The company declared and paid a cash dividend during Year It did not retire any bonds or repurchase any of its own stock. Required: Using the indirect method, compute the net cash provided byused in operating activities for Year Prepare a statement of cash flows for Year Compute the free cash flow for Year
Joyner Companys income statement for Year follows:
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 $
Its balance sheet amounts at the end of Years and are as follows:
Year Year
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 $ $
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 $ $
Equipment that had cost $ and on which there was accumulated depreciation of $ was sold during Year for $ The company declared and paid a cash dividend during Year It did not retire any bonds or repurchase any of its own stock.
Required:
Using the indirect method, compute the net cash provided byused in operating activities for Year
Prepare a statement of cash flows for Year
Compute the free cash flow for Year
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