Problem 14A-7 Prepare and Interpret a Statement of Cash Flows (LO14-1, LO14-4] Joyner Company's income statement for Year 2 follows: Joyner Company's Income Statement 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 $785,000 407,000 378,000 231,000 147,000 ces 8,000 155,000 62,000 $ 93,000 Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: Joyner Company's Balance Sheet C raw Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 349,000 279,000 154,500 92,000 503,500 371,000 $1,145,700 $871,100 Equipment that had cost $31,100 and on which there was accumulated depreciation of $10,300 was sold during Year The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its on Sam Conway, president of the company, considers $101,400 to be the minimum cash balance for operating purposes. from the balance sheet data, only $97,400 in cash was available at the end of the current year. The sharp decline is pu Conway, particularly because sales and profits are at a record high. Required: 1. Using the direct method, adjust the company's income statement to a cash basis for Year 2. 2. Using the data from (1) above and other data from the problem as needed, prepare a statement of cash flows for Yea Complete this question by entering your answers in the tabs below. Required 1 Required 2