Screen Shot 2020-08 at 8.45.37 AM Using the indirect method, compute the net cash provided by/used in operating activities for Yea cash outflows as negative amounts.) Prepare a statement of cash flows for Year 2. (List any deduction in cash and $ 130,340 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Joyner Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Depreciation $ 46,200 Gain on sale of equipment (5,000) Increase in accounts receivable (144,000) Increase in inventory (47,000)| Decrease in prepaid expenses 8,500 Increase in accounts payable 61,000 Decrease in accrued liabilities (14,000) Increase in income taxes payable 3,800 248,500 Investing activities: 0 Financing activities: 158,000 $ 288,340 Net cash provided by operating activities Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 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 $ 718,000 389,000 329,000 151,800 177,200 9,000 186,200 55,860 $ 130,340 Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 129,940 221,000 318,000 8,500 677,440 634,000 165,400 468,600 44,000 $1,190,040 $ 81,000 127,000 286,000 17,000 511,000 507,000 131,900 375, 100 0 $886,100 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 $ 318,000 49,000 85,800 452,800 203,000 655,800 341,000 193,240 534,240 $1,190,040 $252,000 58,000 81,100 391,100 114,000 505,100 286,000 95,000 381,000 $886,100 Equipment that had cost $30,200 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $28,500. 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
