Joyner Company's income statement for Year 2 follows: 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 $ 719,000 299,000 420,000 150,700 269,300 7,000 276,300 82,890 $ 193,410 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 Year 2 $ 135,010 255,000 319,000 Year 1 $ 75,600 138,000 290,000 10,500 21,000 719,510 524,600 630,000 502,000 166,400 130,400 463,600 371,600 50,000 $1,233,110 $ 318,000 42,000 85,200 0 $ 896,200 $255,000 60,000 81,200 445,200 396,200 197,000 118,000 642,200 514,200 334,000 284,000 256,910 98,000 590,910 382,000 $1,233,110 $ 896,200 Equipment that had cost $31,000 and on which there was accumulated depreciation of $10,400 was sold during Year 2 for $27,600. 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. < Prev 4 of 4 Next