agested Sites e Web Slice GalleryE Previous Attempt View Joyner Company\'s incom
ID: 2436709 • Letter: A
Question
agested Sites e Web Slice GalleryE Previous Attempt View Joyner Company's income statement for Year 2 follows Sales Cost of goods sold $ 708,000 274,000 Gross margin Selling and administrative expenses 434,000 218,000 Net operating income Gain on sale of equipment 216,000 Income before taxes Income taxes 223 000 66.900 Net income S 156,100 Its balance sheet amounts at the end af Years 1 and 2 are as folows 2 Year Assets Cash Accounts receivable 5 101,000 $ 76.900 276 000 124,000 318,000 282 000 9,000 18.000 Prepaid expenses Total current assets 704,000 500 900 624,000505.000 166,100 130,900 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipenent Loan to Hymans Company 457.900 374,100 44,000 Total assets $1,205,900 $ 875,000 and Stockholders EquityExplanation / Answer
JOYNERS COMPANY
Cash from operating Activities
Net Income
$ 156,100.00
Add: Adjustments
Depreciation Expense
$ 47,100.00
Profit on Disposal of Equipment
$ -7,000.00
Increase in Accounts Receivables
$ -152,000.00)
Increase in Inventory
$ -36,000.00
Decrease in Prepaid Expenses
$ 9,000.00
Increase in Accounts Payable
$ 43,000.00
Decrease in Accrued Liabilities
$ -14,000.00
Increase in Income tax payable
$ 4,600.00
$ -105,300.00
Net Cash Provided by Operating Activities
$ 50,800.00
JOYNERS COMPANY
Statement Cash Flows
For the 2nd year ended December 31
Cash Flow from Operating Activities:
Net Income
$ 156,100.00
Add: Adjustments
Depreciation Expense
$ 47,100.00
Profit on Disposal of Equipment
$ -7,000.00
Increase in Accounts Receivables
$ -152,000.00
Increase in Inventory
$ -36,000.00
Decrease in Prepaid Expenses
$ 9,000.00
Increase in Accounts Payable
$ 43,000.00
Decrease in Accrued Liabilities
$ -14,000.00
Increase in Income tax payable
$ 4,600.00
$ -105,300.00
A. Net Cash Provided by Operating Activities
$ 50,800.00
Cash Flow from Investing Activities:
Sale of Equipment
$ 27,000.00
Loan to Hymans Company
$ -44,000.00
Purchase of Equipment
$ -150,900.00
B. Net Cash Used in Investing Activities
$ -167,900.00
Cash Flow from Financing Activities:
Proceeds from bonds issue
$ 100,000.00
Issuance of Common Stock
$ 72,000.00
Payment of Dividend
$ -30,800.00
C. Net Cash Provided by Financing Activities
$ 141,200.00
Net Decrease in cash [A+B+C]
$ 24,100.00
Add: cash at the beginning
$ 76,900.00
Cash at the end
$ 101,000.00
Free Cash flow=
(Cash from Operating Activities-Cash Used in Investing Activities)
Free Cash flow=
(50400-167500)
Free Cash flow=
$-117100
Calculation of Equipment purchased.
Gross Opening balance of Equipment account
$ 505,000.00
Less: Original value of Equipment sold during year
$ 31,900.00
$ 473,100.00
Gross Closing balance of Equipment account
$ 624,000.00
Equipment purchased
$ 150,900.00
Calculation of Depreciation for the year
Opening Accumulated depreciation balance
$ 130,900.00
Less: Depreciation of Equipment sold(285000-55000)
$ 11,900.00
$ 119,000.00
Les: Closing balance of Accumulated depreciation
$ 166,100.00
Depreciation Expense for the year
$ 47,100.00
Calculation of Dividend paid
Opening Balance of Retained earnings
$ 92,000.00
Add: Profits during period
$ 156,100.00
Less: Closing balance of Retained Earnings
$ 217,300.00
Dividends Paid
$ 30,800.00
JOYNERS COMPANY
Cash from operating Activities
Net Income
$ 156,100.00
Add: Adjustments
Depreciation Expense
$ 47,100.00
Profit on Disposal of Equipment
$ -7,000.00
Increase in Accounts Receivables
$ -152,000.00)
Increase in Inventory
$ -36,000.00
Decrease in Prepaid Expenses
$ 9,000.00
Increase in Accounts Payable
$ 43,000.00
Decrease in Accrued Liabilities
$ -14,000.00
Increase in Income tax payable
$ 4,600.00
$ -105,300.00
Net Cash Provided by Operating Activities
$ 50,800.00
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.