Accounting Chapter 14 Help Pt.2

Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, L014-2, L014-3] 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: $ 713,000 308,000 405,000 216,000 189,000 Gain on sale of equipment Income before taxes Income taxes Net income 6,000 195,000 58,500 $136,500 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year2 Year 1 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 62,700 46,500 144,000 284,000 16,000 657,700490,500 518,000 131,500 268,000 319,000 8,000 622,000 165,100 Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets e900386,500 $1,164,600 $877,000 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 $ 313,000 $255, 000 55,000 81,000 391,000 199,000105,000 496,000 289,000 92,000 526,500381,000 $1,164,600 $877,000 41,000 85,100 439,100 638 100 332,000 194,500 Equipment that had cost $30,300 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $25,800. 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: .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 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.) Weaver Company Statement of Cash Flows-Indirect Method (partial) Required: .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 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.) Weaver Company Statement of Cash Flows-Indirect Method (partial) 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: Beginning cash and cash equivalents Ending cash and cash equivalents Required 1 Required 3 > Required 1Required 2 Required 3 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow