Joyner Company\'s income statement for Year 2 follows: Sales Cost of goods sold

Question

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: $ 719,000 167,000 552,000 218,000 334,000 Gain on sale of equipment Income before taxes Income taxeS Net income 5,000 339,000 101,700 237,300 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 180,900 $ 71,900 135,000 272,000 17,000 495,900 518,000 130,900 387,100 279,000 319,000 8,500 787,400 621,000 165,100 455,900 47,000 Less accumulated depreciation Net property, plant, and equipmen-t Loan to Hymans Company Total assets $1,290,300 $883,000 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 $ 317,000 $256,000 59,000 81,000 396,000 114,000 510,000 278,000 95,000 373,000 $1,290,300 $883,000 45,000 84,800 446,800 195.000 641,800 349,000 299,500 648,500 Total 1iabilities and stockholders' equity

Explanation / Answer

Statement of Cash Flows Amount in $ Amount in $ Net income (Net income Less Deferred tax liabiltity $ 10) Cash flows from operating activities $    2,37,300.00 Adjustments for: Depreciation $       12,000.00 Gain on Sales of Equipment $        -5,000.00 Loss on sale of Building (Increase) / Decrease in Account receivables $ -1,44,000.00 Inventory Decrease / (Increase) $      -47,000.00 Prepaid Expenses $          8,500.00 Income Tax Payable $          3,800.00 Accrued Laibility $      -14,000.00 Accounts payable Increase / ( Decrese) $       61,000.00 $ -1,24,700.00 Net cash from operating activities $    1,12,600.00 Cash flows from investing activities Sale of Investment Loan to Hymans Company $      -47,000.00 Sale of Equipment $       23,700.00 Purchase of Equipment $      -99,500.00 Net cash used in investing activities $ -1,22,800.00 Cash flows from Financing activities Purchase of Treasury Stock Bonds issue $       81,000.00 Dividend Paid $      -32,800.00 Purcashe of Commons stock Issue of Common Stock $       71,000.00 Net cash used in financing activities $    1,19,200.00 Net increase in cash and cash equivalents $    1,09,000.00 Add :Cash and cash equivalents at beginning of period $       71,900.00 Cash and cash equivalents at end of period $    1,80,900.00 Assets Value = $       30,700.00 Less : Accumulated Depreciation $       12,000.00 Book Value $       18,700.00 Sale Value = $       23,700.00 Profit $          5,000.00 Opening Value = $    3,87,100.00 Less: Sales $       30,700.00 Net Value = $    3,56,400.00 Closing Value $    4,55,900.00 Purhcase = $       99,500.00 Dividend Calculation Net Profit = $    2,37,300.00 Add: Opening $       95,000.00 Less: Closing $    2,99,500.00 $       32,800.00 Answer 1 = Cash Flow from Net Operating Activites = $    1,12,600.00 Answer =3 : Free Cash Flow = Operating Cash Flow - Cash flow from investing Activities Answer =3 : Free Cash Flow = $      -10,200.00 There is No Free Cash Flow because it is negative, So Free Cash Flow = - $ 10,200

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.