Problem 13-10 Prepare a Statement of Cash Flows; Free Cash Flow (LO13-1, LO13-2, LO13-3] Joyner Company's income statement for Year 2 follows: $ 709,000 50,000 659,000 151,900 507,100 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 6,000 513,100 205, 240 $ 307,860 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 64,000 131,000 283,000 17,000 $ 292,360 229,000 319,000 8,500 848,860 632,000 166,400 465,600 46,000 $1,360, 460 000 000 8,000 $883,000 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' equity $ 317,000 41,000 85,200 443,200 200,000 643,200 347,000 370,260 717,260 $1,360, 460 $257,000 59,000 80,000 396,000 104.000 500,000 288,000 95,000 383,000 $ 883,000 Equipment that had cost $30,200 and on which there was accumulated depreciation of $10,600 was sold during Year 2 for $25,600. 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. Equipment that had cost $30,200 and on which there was accumulated depreciation of $10,600 was sold during Year 2 for $25,600. 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. 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) 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: 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