Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling...
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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 $ 701,000 182,000 519,000 150,900 368,100 9,000 377,100 113,130 $ 263,970 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Year 2 $ 281,470 228,000 319,000 Year 1 $ 104,900 113,000 279,000 22,000 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 11,000 839,470 518,900 622,000 508,000 166,900 131,200 455,100 376,800 45,000 $ 1,339,570 $ 318,000 48,000 0 $ 895,700 $ 267,000 59,000 85,300 80,700 451,300 406,700 210,000 107,000 661,300 513,700 349,000 285,000 329,270 97,000 678,270 382,000 $ 1,339,570 $ 895,700 Total liabilities and stockholders' equity 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. 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 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.) Joyner Company Statement of Cash Flows-Indirect Method (partial) 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 $ 701,000 182,000 519,000 150,900 368,100 9,000 377,100 113,130 $ 263,970 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Year 2 $ 281,470 228,000 319,000 Year 1 $ 104,900 113,000 279,000 22,000 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 11,000 839,470 518,900 622,000 508,000 166,900 131,200 455,100 376,800 45,000 $ 1,339,570 $ 318,000 48,000 0 $ 895,700 $ 267,000 59,000 85,300 80,700 451,300 406,700 210,000 107,000 661,300 513,700 349,000 285,000 329,270 97,000 678,270 382,000 $ 1,339,570 $ 895,700 Total liabilities and stockholders' equity 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. 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 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.) Joyner Company Statement of Cash Flows-Indirect Method (partial)
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Answer rating: 100% (QA)
1 Start with Net Income Net Income is given as 263970 2 Adjust for NonCash Expenses Add back depreciation expense 11000 Subtract gain on sale of equipment 9000 Adjusted Net Income 263970 11000 9000 26... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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