Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Joyner Company's income statement for Year 2 follows: 3 $718,000 201,000 517,000 217,000 300,000 Sales Cost of goods sold Gross margin Selling and administrative expenses

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Joyner Company's income statement for Year 2 follows: 3 $718,000 201,000 517,000 217,000 300,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes 3.57 polnts 5,000 305,000 Income taxes 122,000 Net income 183,000 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 Inventory Prepaid expenses Total current assets s 64,500 148,000 271,000 20,000 s03,500 141,100 257,000 319,000 10,000 727,100 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 1iabilities Income taxes payable Total current 1iabilities 8onds payable Total 1iebilities Common stock Retained earnings Total stockholders equity Total liebilities and stockholders equity 621,000 166,900 454,100 48,000 507,000 130,700 376,300 $1,229,200 $ 879,800 320,000 42,000 85,800 447,800 196,e00 643,800 338,000 247,400 585,400 $1,229,200 $ 255,000 53,000 81,800 389,800 119,000 508, 800 274,000 97,000 371,000 $ 879,800 Equipment that had cost $30,300 and on which there was accumulated depreciation of $10,600 was sold during Year 2 for $24,700. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Required: 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 ints Complete this question by entering your answers in the tabs below. Required 2 Required 3 Required 1 Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any ded cash outflows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partial) 0 S Required 2 Required 3 Required 1 negative amounts. Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as Joyner Company Statement of Cash Flows For Year 2 Operating activities Investing activities 0 Financing activities 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0 Required 1 Required 2 Required 3 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow Required 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

AML Auditing Understanding Transaction Monitoring

Authors: Bob Walsh

1st Edition

1539519740, 978-1539519744

More Books

Students also viewed these Accounting questions