Joyner Company's income statement for Year 2 follows: $ 710,000 122,000 588,000 151,800 436,200 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 7,000 443, 200 132,960 $ 310, 240 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 301,040 225,000 319,000 10,500 855,540 627,000 166,300 460, 700 44,000 $1,360,240 $ 53,200 136,000 287,000 21,000 1,200 7,000 31,500 385,500 $882,700 Assets Cash and cash equivalents 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 $ 316,000 44,000 85,400 445, 400 202,000 647,400 335,000 377,840 712,840 $1,360,240 $255,000 54,000 80,700 389,700 118,000 507,700 276,000 99,000 375,000 $882,700 Equipment that had cost $31,600 and on which there was accumulated depreciation of $11,100 was sold during Year 2 for $27,500. 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. 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 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.) Joyner Company Statement of Cash FlowsIndirect Method (partial) Required 1 Required 2 Required 3 Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents ( Required 1 Required 3 > 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
