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Mathematics, 27.04.2021 06:00 tryintopassenioryear

Joyner Company’s income statement for Year 2 follows: Sales $ 703,000
Cost of goods sold 109,000
Gross margin 594,000
Selling and administrative expenses 151,700
Net operating income 442,300
Nonoperating items:
Gain on sale of equipment 9,000
Income before taxes 451,300
Income taxes 135,390
Net income $ 315,910

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

Year 2 Year 1
Assets
Cash and cash equivalents $ 294,410 $ 55,900
Accounts receivable 228,000 141,000
Inventory 318,000 289,000
Prepaid expenses 10,000 20,000
Total current assets 850,410 505,900
Property, plant, and equipment 639,000 508,000
Less accumulated depreciation 165,300 130,200
Net property, plant, and equipment 473,700 377,800
Loan to Hymans Company 46,000 0
Total assets $ 1,370,110 $ 883,700
Liabilities and Stockholders' Equity
Accounts payable $ 311,000 $ 262,000
Accrued liabilities 49,000 57,000
Income taxes payable 84,200 80,700
Total current liabilities 444,200 399,700
Bonds payable 209,000 105,000
Total liabilities 653,200 504,700
Common stock 340,000 287,000
Retained earnings 376,910 92,000
Total stockholders' equity 716,910 379,000
Total liabilities and stockholders' equity $ 1,370,110 $ 883,700

Equipment 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.

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Joyner Company’s income statement for Year 2 follows: Sales $ 703,000
Cost of goods sold 109...
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