BrightIdeas

Unlock Your Academic Potential – BrightIdeas Offers Ultimate Support Through Partnership

Latest Questions

Joyner Companys income statement for Year 2 follows:Sales $ 703,000Cost of goods sold 109,000Gross margin 594,000Selling and administrative expenses 151,700Net operating income 442,300Nonoperating items: Gain on sale of equipment 9,000Income before taxes 451,300Income taxes 135,390Net income $ 315,910Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1Assets Cash and cash equivalents $ 294,410 $ 55,900Accounts receivable 228,000 141,000Inventory 318,000 289,000Prepaid expenses 10,000 20,000Total current assets 850,410 505,900Property, plant, and equipment 639,000 508,000Less accumulated depreciation 165,300 130,200Net property, plant, and equipment 473,700 377,800Loan to Hymans Company 46,000 0Total assets $ 1,370,110 $ 883,700Liabilities and Stockholders' Equity Accounts payable $ 311,000 $ 262,000Accrued liabilities 49,000 57,000Income taxes payable 84,200 80,700Total current liabilities 444,200 399,700Bonds payable 209,000 105,000Total liabilities 653,200 504,700Common stock 340,000 287,000Retained earnings 376,910 92,000Total stockholders' equity 716,910 379,000Total liabilities and stockholders' equity $ 1,370,110 $ 883,700Equipment that had cost $31,500 and on which there was accumulated depreciation of $10,400 was sold during Year 2 for $30,100. 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