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 $717,000 134,000 583,000 151, 100 431,900 7,000 438,900 175,560 $ 263, 340 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 251,840 228,000 320,000 10,000 809,840 631,000 167,000 464,000 44,000 $1,317,840 $ 84,300 119,000 273,000 20,000 496,300 518,000 131,400 386,600 $882,900 Assets Cash and cash equivalents 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' equitv $ 315,000 42,000 85,200 442,200 209,000 651,200 340,000 326,640 666,640 $1,317,840 $262,000 53,000 80,900 395,900 107,000 502,900 282,000 98,000 380,000 $882.900 1. USHY HE HELL Huvu, compute LIC HELLASI Proviucu wyruscull upcially OLLIVILIES TOI ICOI 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) 0 $ 0 Route Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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: 0 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 16/,00 464,000 44,000 $1,317,840 131,400 386,600 0 $882,900 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 $ 315,000 42,000 85,200 442,200 209,000 651,200 340,000 326,640 666,640 $1,317,840 $262,000 53,000 80,900 395,900 107,000 502,900 282,000 98,000 380,000 $882,900 Equipment that had cost $30,200 and on which there was accumulated depreciation of $11,400 was sold during Year 2 for $25,800. 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow Required 2 Required
