Question

In: Accounting

Joyner Company’s income statement for Year 2 follows: Sales $ 719,000 Cost of goods sold 100,000...

Joyner Company’s income statement for Year 2 follows:

Sales $ 719,000
Cost of goods sold 100,000
Gross margin 619,000
Selling and administrative expenses 150,600
Net operating income 468,400
Nonoperating items:
Gain on sale of equipment 9,000
Income before taxes 477,400
Income taxes 143,220
Net income $ 334,180

Its balance sheet amounts at the end of Years 1 and 2 are as follows:

Year 2 Year 1
Assets
Cash and cash equivalents $ 303,780 $ 92,100
Accounts receivable 221,000 116,000
Inventory 319,000 281,000
Prepaid expenses 10,500 21,000
Total current assets 854,280 510,100
Property, plant, and equipment 639,000 516,000
Less accumulated depreciation 167,000 131,400
Net property, plant, and equipment 472,000 384,600
Loan to Hymans Company 50,000 0
Total assets $ 1,376,280 $ 894,700
Liabilities and Stockholders' Equity
Accounts payable $ 314,000 $ 269,000
Accrued liabilities 46,000 58,000
Income taxes payable 85,100 81,700
Total current liabilities 445,100 408,700
Bonds payable 193,000 109,000
Total liabilities 638,100 517,700
Common stock 341,000 283,000
Retained earnings 397,180 94,000
Total stockholders' equity 738,180 377,000
Total liabilities and stockholders' equity $ 1,376,280 $ 894,700

Equipment that had cost $30,700 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $29,500. 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.

Solutions

Expert Solution

If you have any query ask in comment section. If you like the answer plz rate. Thanks


Related Solutions

Joyner Company’s income statement for Year 2 follows: Sales $ 719,000 Cost of goods sold 177,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 719,000 Cost of goods sold 177,000 Gross margin 542,000 Selling and administrative expenses 216,000 Net operating income 326,000 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes 332,000 Income taxes 132,800 Net income $ 199,200 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 137,800 $ 32,000 Accounts receivable 278,000 145,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales   $   714,000 Cost of goods sold     ...
Joyner Company’s income statement for Year 2 follows: Sales   $   714,000 Cost of goods sold      207,000 Gross margin      507,000 Selling and administrative expenses      217,000 Net operating income      290,000 Nonoperating items:         Gain on sale of equipment      7,000 Income before taxes      297,000 Income taxes      89,100 Net income   $   207,900 Its balance sheet amounts at the end of Years 1 and 2 are as follows:     Year 2      Year 1 Assets        ...
Joyner Company’s income statement for Year 2 follows: Sales $ 708,000 Cost of goods sold 387,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 708,000 Cost of goods sold 387,000 Gross margin 321,000 Selling and administrative expenses 151,100 Net operating income 169,900 Nonoperating items: Gain on sale of equipment 8,000 Income before taxes 177,900 Income taxes 53,370 Net income $ 124,530 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 97,030 $ 80,700 Accounts receivable 228,000 132,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 718,000 Cost of goods sold 327,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 718,000 Cost of goods sold 327,000 Gross margin 391,000 Selling and administrative expenses 218,000 Net operating income 173,000 Nonoperating items: Gain on sale of equipment 9,000 Income before taxes 182,000 Income taxes 72,800 Net income $ 109,200 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 53,400 $ 55,500 Accounts receivable 256,000 135,000 Inventory 319,000 284,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold 303,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold 303,000 Gross margin 411,000 Selling and administrative expenses 217,000 Net operating income 194,000 Nonoperating items: Gain on sale of equipment 7,000 Income before taxes 201,000 Income taxes 80,400 Net income $ 120,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 65,800 $ 87,600 Accounts receivable 253,000 118,000 Inventory 320,000 274,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 718,000 Cost of goods sold 310,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 718,000 Cost of goods sold 310,000 Gross margin 408,000 Selling and administrative expenses 218,000 Net operating income 190,000 Nonoperating items: Gain on sale of equipment 8,000 Income before taxes 198,000 Income taxes 59,400 Net income $ 138,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 81,000 $ 84,700 Accounts receivable 257,000 114,000 Inventory 319,000 283,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 717,000 Cost of goods sold 208,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 717,000 Cost of goods sold 208,000 Gross margin 509,000 Selling and administrative expenses 150,800 Net operating income 358,200 Nonoperating items: Gain on sale of equipment 10,000 Income before taxes 368,200 Income taxes 110,460 Net income $ 257,740 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 234,640 $ 52,500 Accounts receivable 229,000 150,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 717,000 Cost of goods sold 208,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 717,000 Cost of goods sold 208,000 Gross margin 509,000 Selling and administrative expenses 150,800 Net operating income 358,200 Nonoperating items: Gain on sale of equipment 10,000 Income before taxes 368,200 Income taxes 110,460 Net income $ 257,740 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 234,640 $ 52,500 Accounts receivable 229,000 150,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 703,000 Cost of goods sold 217,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 703,000 Cost of goods sold 217,000 Gross margin 486,000 Selling and administrative expenses 217,000 Net operating income 269,000 Nonoperating items: Gain on sale of equipment 7,000 Income before taxes 276,000 Income taxes 110,400 Net income $ 165,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 99,100 $ 74,600 Accounts receivable 270,000 123,000 Inventory 319,000 284,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 709,000 Cost of goods sold 317,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 709,000 Cost of goods sold 317,000 Gross margin 392,000 Selling and administrative expenses 151,200 Net operating income 240,800 Nonoperating items: Gain on sale of equipment 8,000 Income before taxes 248,800 Income taxes 74,640 Net income $ 174,160 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 148,060 $ 78,100 Accounts receivable 222,000 135,000 Inventory...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT