Problem 1.

Problem 2.

Yoric Company listed the net changes in its balance sheet accounts for the past year as follows: Credits > Debits by: Debits > Credits by: $ 60,400 170,400 $ 83,800 4,300 108,000 Cash Accounts receivable Inventory Prepaid expenses Long-term loans to subsidiaries Long-term investments Plant and equipment Accumulated depreciation Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings 98,000 330,000 65,000 48,100 6,000 9,200 404,000 125,000 76,000 $ 794,100 $ 794,100 The following additional information is available about last year's activities: a. Net income for the year was $_?_. b. company sold equipment during the year $35,300. The equipment originally cost 0,900 and had $126,900 in accumulated depreciation at the time of sale. c. Cash dividends of $10,500 were declared and paid during the year. d. The beginning and ending balances in the plant and Equipment and Accumulated Depreciation accounts are given below: Plant and equipment Accumulated depreciation Beginning Ending $ 2,861,000 $3,191,000 $984,000 $1,049,000 e. The balance in the Cash account at the beginning of the year was $109,600; the balance at the end of the year was $_? f. If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change. Required: Using the indirect method, prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Answer is not complete. $ 86,500 Yoric Company Statement of Cash Flows Operating activities: Net income Adjustments to convert net income to a cash basis: Depreciation S Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Gain on sale of equipment ololololololololo 225,900 X (170,400) 83,800 4,300 48,100 (6,000) 9,200 (1,000) X 193,900 280,400 x Net cash used in operating activities Investing activities: Decrease in long-term loans to subsidiaries Proceeds from sale of equipment Additions to long-term investments Additions to plant and equipment 108,000 35,000 X (98,000) (490,900) (445,900) Net cash used in investing activities Financing activities: Issuance of bonds payable Issuance of common stock Cash dividends paid x 404,000 (125,000) (10,500) Net cash used in financing activities X 268,500 103,000 Beginning cash and cash equivalents Ending cash and cash equivalents 103,000 Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow (LO14-1, LO14-2, LO14-3] Joyner Company's income statement for Year 2 follows: $ 713,000 311,000 402,000 150,600 251,400 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 6,000 257,400 102,960 $ 154, 440 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 136,040 229,000 319,000 9,000 693,040 624,000 166,300 457,700 45,000 $1,195,740 $ 88,900 114,000 287,000 18,000 507,900 511,000 130,400 380,600 0 $888,500 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 314,000 45,000 86,000 445,000 192,000 637,000 349,000 209,740 558, 740 $1,195,740 $ 270,000 56,000 81,500 407,500 107,000 514,500 284,000 90,000 374,000 $888,500 Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $24,800. 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 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 $ 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: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 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