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Joyner Companys income statement for Year 2 follows: Sales $ 715,000 Cost of goods sold 286,000 Gross margin 429,000 Selling and administrative expenses 217,000 Net

Joyner Companys income statement for Year 2 follows:

Sales $ 715,000
Cost of goods sold 286,000
Gross margin 429,000
Selling and administrative expenses 217,000
Net operating income 212,000
Nonoperating items:
Gain on sale of equipment 8,000
Income before taxes 220,000
Income taxes 88,000
Net income $ 132,000

Its balance sheet amounts at the end of Years 1 and 2 are as follows:

Year 2 Year 1
Assets
Cash $ 79,400 $ 70,000
Accounts receivable 265,000 144,000
Inventory 319,000 277,000
Prepaid expenses 10,500 21,000
Total current assets 673,900 512,000
Property, plant, and equipment 639,000 511,000
Less accumulated depreciation 166,600 132,000
Net property, plant, and equipment 472,400 379,000
Loan to Hymans Company 43,000 0
Total assets $ 1,189,300 $ 891,000
Liabilities and Stockholders' Equity
Accounts payable $ 316,000 $ 266,000
Accrued liabilities 45,000 50,000
Income taxes payable 85,400 82,000
Total current liabilities 446,400 398,000
Bonds payable 200,000 116,000
Total liabilities 646,400 514,000
Common stock 348,000 284,000
Retained earnings 194,900 93,000
Total stockholders' equity 542,900 377,000
Total liabilities and stockholders' equity $ 1,189,300 $ 891,000

Equipment that had cost $31,900 and on which there was accumulated depreciation of $10,000 was sold during Year 2 for $29,900. 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

Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash and cash outflows as negative amounts.)

Weaver Company
Statement of Cash FlowsIndirect Method (partial)

Required 2

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

Required 3

Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)

Free cash flow

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