Propiem 14-1U Prepare a Statement or Casn riows; Free Casn riow (LO14-1, LU14-4, LU14-3) Joyner Company's income statement for Year 2 follows: Sales $701,000 75,000 Cost of goods sold Gross margin 626,000 216,000 Selling and administrative expenses Net operating income Nonoperating items Gain on sale of equipment 410,000 5,000 Income before taxes 415,000 124,500 Income taxes $290,500 Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash 225,700 261,000 319,000 10,500 55,500 131,000 Accounts receivable Inventory 274,000 Prepaid expenses 21,000 816,200 481,500 Total current assets Property, plant, and equipment 634,000 512,000 130,700 Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company 166,200 467,800 381,300 41,000 0 $1,325,000 Total assets $862,800 Liabilities and Stockholders Equity Accounts payable 313,000 48,000 84,000 $259,000 52,000 81,800 Accrued liabilities Income taxes payable Total current liabilities 392,800 105,000 445,000 203,000 648,000 Bonds payable 497,800 Total liabilities 274,000 91,000 Common stock 330,000 347,000 Retained earnings Total stockholders equity 677,000 365,000 $862,800 Total liabilities and stockholders' equity $1,325,000 Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $23,900. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $23,900. 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 3 Required 2 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) Net income 290,500 Adjustments to convert sales to a cash basis: $ (130,000) (45,000) Increase in accounts receivable Increase in inventory Decrease in prepaid expenses 10,500 Depreciation Increase in accounts payable Decrease in accrued liabilities Decrease in accounts payable Gain on sale of equipment (164,500) $ 126,000 Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $23,900. 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 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: Net cash provided by operating activities Investing activities Additions to property, plant, and equipment 0 Financing activities: Issuance of bonds payable Issuance of common stock Cash dividends paid Net cash provided by financing activities 0 Net increase in cash 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0 Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $23,900. 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 2 Required 3 Required 1 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow Required 3 Required 2