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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: Investing activities:

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: Investing activities:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Investing activities: Financing activities: 0
Transcribed Image Text: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: Investing activities: Financing activities: 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 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 $ 900,000 500,000 400,000 328,000 72,000 Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock 8,000 80,000 24,000 $ 56,000 Year 2 $ 4,000 250,000 310,000 7,000 571,000 510,000 132,000 378,000 40,000 $ 989,000 $ 310,000 20,000 45,000 375,000 190,000 Year 1 $ 21,000 170,000 260,000 14,000 465,000 400,000 120,000 280,000 0 $ 745,000 $ 250,000 30,000 42,000 322,000 70,000 565,000 392,000 300,000 270,000 Retained earnings 83,000 124,000 424,000 Total stockholders' equity 353,000 Total liabilities and stockholders' equity. $ 989,000 $ 745,000 Equipment that had cost $40.000 and on which there was accumulated depreciation of $30.000 was sold during Year 2 for $18.000.
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 $ 900,000 500,000 400,000 328,000 72,000 Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock 8,000 80,000 24,000 $ 56,000 Year 2 $ 4,000 250,000 310,000 7,000 571,000 510,000 132,000 378,000 40,000 $ 989,000 $ 310,000 20,000 45,000 375,000 190,000 Year 1 $ 21,000 170,000 260,000 14,000 465,000 400,000 120,000 280,000 0 $ 745,000 $ 250,000 30,000 42,000 322,000 70,000 565,000 392,000 300,000 270,000 Retained earnings 83,000 124,000 424,000 Total stockholders' equity 353,000 Total liabilities and stockholders' equity. $ 989,000 $ 745,000 Equipment that had cost $40.000 and on which there was accumulated depreciation of $30.000 was sold during Year 2 for $18.000.
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