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 $ 703,000 268,000 435,000 150,800 284, 200 7,000 291, 200 87,360 $ 203,840 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. Year 2 $ 209,640 220,000 320,000 8,500 758,140 628,000 166,300 461,700 47,000 $ 1,266,840 $ 316,000 45,000 85,600 446,600 206,000 652,600 349,000 265, 240 614,240 $ 1,266,840 Year 1 $ 97,600 120,000 276,000 17,000 510,600 504,000 130,900 373,100 0 $ 883,700 $ 262,000 60,000 80,700 402,700 105,000 507,700 281,000 95,000 376,000 $ 883,700 Equipment that had cost $31,000 and on which there was accumulated depreciation of $11,000 was sold during Year 2 for $27,000. 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.
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 $ 703,000 268,000 435,000 150,800 284, 200 7,000 291, 200 87,360 $ 203,840 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. Year 2 $ 209,640 220,000 320,000 8,500 758,140 628,000 166,300 461,700 47,000 $ 1,266,840 $ 316,000 45,000 85,600 446,600 206,000 652,600 349,000 265, 240 614,240 $ 1,266,840 Year 1 $ 97,600 120,000 276,000 17,000 510,600 504,000 130,900 373,100 0 $ 883,700 $ 262,000 60,000 80,700 402,700 105,000 507,700 281,000 95,000 376,000 $ 883,700 Equipment that had cost $31,000 and on which there was accumulated depreciation of $11,000 was sold during Year 2 for $27,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
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
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
$ 703,000
268,000
Its balance sheet amounts at the end of Years 1 and 2 are as follows:
Income taxes payable
Total current liabilities
Bonds payable
Total liabilities
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
435,000
150,800
284, 200
7,000
291, 200
87,360
$ 203,840
Year 2
$ 209,640
220,000
320,000
8,500
758,140
628,000
166,300
461,700
47,000
$ 1,266,840
$ 316,000
45,000
85,600
446,600
206,000
652,600
349,000
265, 240
614,240
$ 1,266,840
Year 1
$ 97,600
120,000
276,000
17,000
510,600
504,000
130,900
373,100
0
$ 883,700
$ 262,000
60,000
80,700
402,700
105,000
507,700
281,000
95,000
376,000
$ 883,700
Equipment that had cost $31,000 and on which there was accumulated depreciation of $11,000 was sold during Year 2 for $27,000.
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.
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 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.)
Required 1 Required 2
Operating activities:
Complete this question by entering your answers in the tabs below.
Investing activities:
Required 3
Financing activities:
Joyner Company
Statement of Cash Flows-Indirect Method (partial)
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
Required 1
Required 3
Beginning cash and cash equivalents
Ending cash and cash equivalents
Free cash flow
< Required 1
Required 2 Required 3
Required 2 >
< Required 1
Complete this question by entering your answers in the tabs below.
Required 3 >
Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)
< Required 2
Required 3 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education