Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Joyner Company's income statement for Year 2 follows: $ 713,000 141,000 572,000 150,900 421,100 Sales Cost of goods sold Gross margin Selling and administrative expenses
Joyner Company's income statement for Year 2 follows: $ 713,000 141,000 572,000 150,900 421,100 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 10,000 431,100 172, 440 $ 258,660 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 239,660 227,000 319,000 10,500 796,160 628,000 165,200 462,800 44,000 $1,302,960 $ 57.900 128,000 285,000 21,000 491,900 514,000 131,700 382,300 0 $874,200 Assets cash and cash equivalent Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Loss 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 Bonde payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 311,000 46,000 85,800 442,800 199,000 641,800 342,000 319,160 661,160 $1,302,960 $258,000 55,000 81,200 394,200 107.000 501,200 280,000 93,000 373,000 $874,200 Equipment that had cost $31,900 and on which there was accumulated depreciation of $1,500 was sold during Year 2 for $30.400. 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
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