Joyner Company’s income statement for Year 2 follows
Sales | $ | 702,000 |
Cost of goods sold | 219,000 | |
Gross margin | 483,000 | |
Selling and administrative expenses | 218,000 | |
Net operating income | 265,000 | |
Nonoperating items: | ||
Gain on sale of equipment | 6,000 | |
Income before taxes | 271,000 | |
Income taxes | 81,300 | |
Net income | $ | 189,700 |
Its balance sheet amounts at the end of Years 1 and 2 are as follows:
Year 2 | Year 1 | ||||
Assets | |||||
Cash | $ | 139,800 | $ | 69,200 | |
Accounts receivable | 263,000 | 114,000 | |||
Inventory | 320,000 | 283,000 | |||
Prepaid expenses | 10,000 | 20,000 | |||
Total current assets | 732,800 | 486,200 | |||
Property, plant, and equipment | 629,000 | 504,000 | |||
Less accumulated depreciation | 165,800 | 130,100 | |||
Net property, plant, and equipment | 463,200 | 373,900 | |||
Loan to Hymans Company | 44,000 | 0 | |||
Total assets | $ | 1,240,000 | $ | 860,100 | |
Liabilities and Stockholders' Equity | |||||
Accounts payable | $ | 316,000 | $ | 254,000 | |
Accrued liabilities | 42,000 | 50,000 | |||
Income taxes payable | 85,000 | 80,100 | |||
Total current liabilities | 443,000 | 384,100 | |||
Bonds payable | 209,000 | 103,000 | |||
Total liabilities | 652,000 | 487,100 | |||
Common stock | 341,000 | 283,000 | |||
Retained earnings | 247,000 | 90,000 | |||
Total stockholders' equity | 588,000 | 373,000 | |||
Total liabilities and stockholders' equity | $ | 1,240,000 | $ | 860,100 | |
Equipment that had cost $31,700 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $26,100. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock.
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.
Iif you have any query ask in comment section. If you like the answer plz rate. Thanks
Joyner Company’s income statement for Year 2 follows Sales $ 702,000 Cost of goods sold 219,000...
Joyner Company’s income statement for Year 2 follows: Sales $ 700,000 Cost of goods sold 207,000 Gross margin 493,000 Selling and administrative expenses 216,000 Net operating income 277,000 Nonoperating items: Gain on sale of equipment 7,000 Income before taxes 284,000 Income taxes 113,600 Net income $ 170,400 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 120,800 $ 73,300 Accounts receivable 267,000 131,000 Inventory 319,000 276,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 718,000 Cost of goods sold 230,000 Gross margin 488,000 Selling and administrative expenses 218,000 Net operating income 270,000 Nonoperating items: Gain on sale of equipment 7,000 Income before taxes 277,000 Income taxes 83,100 Net income $ 193,900 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 123,100 $ 43,500 Accounts receivable 260,000 148,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold 365,000 Gross margin 349,000 Selling and administrative expenses 217,000 Net operating income 132,000 Nonoperating items: Gain on sale of equipment 9,000 Income before taxes 141,000 Income taxes 56,400 Net income $ 84,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 33,400 $ 81,600 Accounts receivable 262,000 110,000 Inventory 319,000 276,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 714,000 Cost of goods sold 84,000 Gross margin 630,000 Selling and administrative expenses 217,000 Net operating income 413,000 Nonoperating items: Gain on sale of equipment 7,000 Income before taxes 420,000 Income taxes 126,000 Net income $ 294,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 234,000 $ 69,900 Accounts receivable 250,000 114,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 718,000 Cost of goods sold 43,000 Gross margin 675,000 Selling and administrative expenses 218,000 Net operating income 457,000 Nonoperating items: Gain on sale of equipment 8,000 Income before taxes 465,000 Income taxes 139,500 Net income $ 325,500 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 285,100 $ 78,400 Accounts receivable 255,000 124,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 715,000 Cost of goods sold 182,000 Gross margin 533,000 Selling and administrative expenses 218,000 Net operating income 315,000 Nonoperating items: Gain on sale of equipment 8,000 Income before taxes 323,000 Income taxes 129,200 Net income $ 193,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 143,500 $ 91,000 Accounts receivable 274,000 123,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 708,000 Cost of goods sold 399,000 Gross margin 309,000 Selling and administrative expenses 216,000 Net operating income 93,000 Nonoperating items: Gain on sale of equipment 8,000 Income before taxes 101,000 Income taxes 40,400 Net income $ 60,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 14,900 $ 60,100 Accounts receivable 269,000 147,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 701,000 Cost of goods sold 322,000 Gross margin 379,000 Selling and administrative expenses 216,000 Net operating income 163,000 Nonoperating items: Gain on sale of equipment 10,000 Income before taxes 173,000 Income taxes 69,200 Net income $ 103,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash and cash equivalents $ 35,000 $ 85,200 Accounts receivable 263,000 127,000 Inventory...
Joyner Company’s income statement for Year 2 follows: Sales $ 712,000 Cost of goods sold 91,000 Gross margin 621,000 Selling and administrative expenses 216,000 Net operating income 405,000 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes 411,000 Income taxes 123,300 Net income $ 287,700 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 242,200 $ 92,500 Accounts receivable 269,000 114,000 Inventory 320,000 271,000 Prepaid...
Joyner Company’s income statement for Year 2 follows: Sales $ 713,000 Cost of goods sold 287,000 Gross margin 426,000 Selling and administrative expenses 218,000 Net operating income 208,000 Nonoperating items: Gain on sale of equipment 5,000 Income before taxes 213,000 Income taxes 85,200 Net income $ 127,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 54,600 $ 45,900 Accounts receivable 276,000 135,000 Inventory 320,000 287,000 Prepaid...