JOYNER COMPANYSTATEMENT OF CASH FLOWSFor Year 2#2: Prepare a statement of Cash Flow for Year 2Operating activities:Net Income…………………………………………………………….Adjustments to convert net income to cash basis:Depreciation charges……………………………………………Increase in accounts receivableIncrease in inventoryDecrease in prepaid expensesIncrease in account payableDecrease in accrued liabilitiesGain on sale of equipmentIncrease in deferred income taxesNet cash provided by operating activities.-Investing activities:Proceed from sale of equipmentLoan to Hymas companyAdditions to plant and equipmentNet cash used for investing activities-Financing activities:Increase in bonds payableIncrease in common stockCash dividendsNet cash used for investing activities-Net decrease in Cash-Does the variance between thesecell G31? If so , your cash flowCash balance at beginning of yearCash balance at end of year3.) Free Cash Flow computation:Net Cash provided by operating activitiesCapital expendituresDividendsFree Cash Flowsee above- 4.) “Don’t forget to answer the question” #1 of the problem states to complete the “Indirect Method” for Cash fromOperations. You DO NOT have to complete this, Only #2, #3, and #4Instructor Hint: The chapter is a great resource to walk thru examples. LO14-2, and pages644-649 goes over a problem very similar to this and walks thru each account and how toreflect the changes on the cash flow statement. I would recommend you use this exampleproblem in your text as your guide to completing the Joyner problemDoes the variance between these numbers equalcell G31? If so , your cash flow is correct

JOYNER COMPANYSTATEMENT OF CASH FLOWSFor Year 2#2: Prepare a statement of Cash Flow for Year 2Operating activities:Net Income…………………………………………………………….Adjustments to convert net income to cash basis:Depreciation charges……………………………………………Increase in accounts receivableIncrease in inventoryDecrease in prepaid expensesIncrease in account payableDecrease in accrued liabilitiesGain on sale of equipmentIncrease in deferred income taxesNet cash provided by operating activities.-Investing activities:Proceed from sale of equipmentLoan to Hymas companyAdditions to plant and equipmentNet cash used for investing activities-Financing activities:Increase in bonds payableIncrease in common stockCash dividendsNet cash used for investing activities-Net decrease in Cash-Does the variance between thesecell G31? If so , your cash flowCash balance at beginning of yearCash balance at end of year3.) Free Cash Flow computation:Net Cash provided by operating activitiesCapital expendituresDividendsFree Cash Flowsee above- 4.) “Don’t forget to answer the question” #1 of the problem states to complete the “Indirect Method” for Cash fromOperations. You DO NOT have to complete this, Only #2, #3, and #4Instructor Hint: The chapter is a great resource to walk thru examples. LO14-2, and pages644-649 goes over a problem very similar to this and walks thru each account and how toreflect the changes on the cash flow statement. I would recommend you use this exampleproblem in your text as your guide to completing the Joyner problemDoes the variance between these numbers equalcell G31? If so , your cash flow is correct