Joyner Company's income statement for Year 2 follows: $ 714,000 310,000 404,000 150,500 253,500 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 7,000 260,500 104,200 $ 156,300 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 123,000 228,000 318,000 11,000 680,000 637,000 165,500 471,500 44,000 $1,195,500 $ 44,500 144,000 290,000 22,000 500,500 509,000 131, 100 377,900 $ 878,400 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 $ 311,000 47,000 84,200 442,200 200,000 642,200 335,000 218,300 553,300 $1,195,500 $ 262,000 52,000 81,400 395,400 102,000 497,400 286,000 95,000 381,000 $ 878,400 Equipment that had cost $30,600 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $27,100. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. Equipment that had cost $30,600 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $27,100. 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 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) 0 $ Complete this question by entering your answers in the tabs below. 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 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents S 0 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
