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Joyner Company's income statement for Year 2 follows: $ 710.000 119.000 591,000 216.000 375 000 Sales Cost of goods sold Gross margin Selling and administrative
Joyner Company's income statement for Year 2 follows: $ 710.000 119.000 591,000 216.000 375 000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 6.000 381.000 152 400 $ 228,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 169.400 262.000 320.000 8.500 759.900 636.000 165,500 470,500 46.000 $1,276,400 $81.800 120,000 272,000 17.000 490.800 504,000 131,600 372,400 $ 863,200 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 $ 315,000 43.000 84.700 442.700 203.000 645.700 343.000 287 700 630,700 $1.276.400 $250,000 56.000 81,200 387,200 103,000 490,200 281,000 92,000 373,000 SB63.200 Equipment that hed 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
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