Joyner Company's income statement for Year 2 follows: $ 718,000 235,000 483,000 150,700 332,300 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 5,000 337,300 134,920 $ 202,380 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 213,580 223,000 319,000 9,000 764,580 623,000 165,100 457,900 40,000 $1,262,480 $ 75,000 134,000 288,000 18,000 515,000 506,000 131,200 374,800 0 $889,800 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 $ 319,000 48,000 85,400 452,400 209,000 661,400 333,000 268,080 601,080 $1,262,480 $ 255,000 58,000 80,800 393,800 119,000 512,800 279,000 98,000 377,000 $889,800 Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $23,800. 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 Flows-Indirect Method (partial) Required 1 Required 2 Required 3 Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash 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 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
