Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Joyner Company's income statement for Year 2 follows: 6 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items:
Joyner Company's income statement for Year 2 follows: 6 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 $ 718,000 76,000 642,000 151,000 491,000 0.75 points 6,000 497,000 149,100 $ 347,900 Skipped Its balance sheet amounts at the end of Years 1 and 2 are as follows: eBook Year 2 Year 1 o References $ 309,500 228,000 319,000 9,500 866,000 633,000 165,900 467,100 47,000 $1,380,100 $ 49,500 149,000 278,000 19,000 495,500 511,000 131,000 380,000 $ 875,500 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 313,000 42.000 84,900 439,900 192,000 631,900 345,000 403, 200 748,200 $1,380,100 $ 253,000 58,000 80,500 391,500 119,000 510,500 276,000 89,000 365,000 $ 875,500 Equipment that had cost $30,700 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $25,400. 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. 6 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. Complete this question by entering your answers in the tabs below. 0.75 points Required 1 Required 2 Required 3 Skipped Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.) eBook Joyner Company Statement of Cash Flows-Indirect Method (partial) References 0 $ 0 6 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. Complete this question by entering your answers in the tabs below. 0.75 points Required 1 Required 2 Required 3 Skipped Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) eBook Joyner Company Statement of Cash Flows For Year 2 o Operating activities: References Investing activities 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0 References Equipment that had cost $30,700 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $25,400. 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. Complete this question by entering your answers in the tabs below. 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started