Question
Joyner Companys income statement for Year 2 follows: Sales $ 705,000 Cost of goods sold 207,000 Gross margin 498,000 Selling and administrative expenses 217,000 Net
Joyner Companys income statement for Year 2 follows: |
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Sales | $ | 705,000 |
Cost of goods sold |
| 207,000 |
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Gross margin |
| 498,000 |
Selling and administrative expenses |
| 217,000 |
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Net operating income |
| 281,000 |
Gain on sale of equipment |
| 9,000 |
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Income before taxes |
| 290,000 |
Income taxes |
| 116,000 |
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Net income | $ | 174,000 |
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Its balance sheet amounts at the end of Years 1 and 2 are as follows: |
| Year 2 | Year 1 | ||
Assets |
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Cash | $ | 124,400 | $ | 104,000 |
Accounts receivable |
| 265,000 |
| 113,000 |
Inventory |
| 318,000 |
| 282,000 |
Prepaid expenses |
| 10,500 |
| 21,000 |
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Total current assets |
| 717,900 |
| 520,000 |
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Property, plant, and equipment |
| 626,000 |
| 504,000 |
Less accumulated depreciation |
| 165,100 |
| 131,800 |
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Net property, plant, and equipment |
| 460,900 |
| 372,200 |
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Loan to Hymans Company |
| 48,000 |
| 0 |
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Total assets | $ | 1,226,800 | $ | 892,200 |
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Liabilities and Stockholders' Equity |
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Accounts payable | $ | 314,000 | $ | 263,000 |
Accrued liabilities |
| 44,000 |
| 55,000 |
Income taxes payable |
| 85,700 |
| 81,200 |
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Total current liabilities |
| 443,700 |
| 399,200 |
Bonds payable |
| 201,000 |
| 108,000 |
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Total liabilities |
| 644,700 |
| 507,200 |
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Common stock |
| 344,000 |
| 289,000 |
Retained earnings |
| 238,100 |
| 96,000 |
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Total stockholders' equity |
| 582,100 |
| 385,000 |
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Total liabilities and stockholders' equity | $ | 1,226,800 | $ | 892,200 |
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Equipment that had cost $30,700 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $29,000. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. What's the statement of cash flows? |
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