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 Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 $ 701,000 182,000 519,000 150,900 368,100 9,000 377,100 113,130 $ 263,970 Required 1 Required 2 Required 3 Year 2 $ 281,470 228,000 319,000 11,000 839,470 622,000 166,900 455,100 45,000 $ 1,339,570 $ 318,000 48,000 85,300 451,300 210,000 Complete this question by entering your answers in the tabs below. Year 1 $ 104,900 113,000 279,000 22,000 518,900 508,000 131,200 376,800 Joyner Company Statement of Cash Flows-Indirect Method (partial) e $ 895,700 Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $29,700 The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. $ 267,000 59,000 80,700 661,300 349,000 329,270 678,270 $ 1,339,570 $ 895,700 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. 406,700 107,000 513,700 285,000 97,000 382,000 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Net income
Assets
Cash
Its balance sheet amounts at the end of Years 1 and 2 are as follows:
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
$ 701,000
182,000
519,000
150,900
368, 100
9,000
377,100
113, 130
$ 263,970
Required 1 Required 2
Required 3
Year 2
$ 281,470
228,000
319,000
11,000
839,470
622,000
166,900
455,100
45,000
$ 1,339,570
$ 318,000
48,000
85,300
451,300
210,000
661,300
349,000
329,270
678,270
$1,339,570
Complete this question by entering your answers in the tabs below.
Joyner Company
Statement of Cash Flows-Indirect Method (partial)
Year 1
$ 104,900
113,000
279,000
22,000
518,900
508,000
131,200
376,800
8
Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $29,700.
The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.
$ 895,700
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.
$ 267,000
59,000
80,700
406,700
107,000
513,700
285,000
97,000
382,000
$ 895,700
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.)
Transcribed Image Text: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 Net income Assets Cash Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 $ 701,000 182,000 519,000 150,900 368, 100 9,000 377,100 113, 130 $ 263,970 Required 1 Required 2 Required 3 Year 2 $ 281,470 228,000 319,000 11,000 839,470 622,000 166,900 455,100 45,000 $ 1,339,570 $ 318,000 48,000 85,300 451,300 210,000 661,300 349,000 329,270 678,270 $1,339,570 Complete this question by entering your answers in the tabs below. Joyner Company Statement of Cash Flows-Indirect Method (partial) Year 1 $ 104,900 113,000 279,000 22,000 518,900 508,000 131,200 376,800 8 Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $29,700. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. $ 895,700 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. $ 267,000 59,000 80,700 406,700 107,000 513,700 285,000 97,000 382,000 $ 895,700 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.)
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