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Joyner Company's income statement for Year 2 follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Equipment that
Joyner Company's income statement for Year 2 follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Equipment that had cost $30,500 and on which there was accumulated depreciation of $11,800 was sold during Year 2 for $26,700. 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. 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.) 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)
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