4 Joyner Company's income statement for Year 2 follows: BO points $ 710,000 126,000 584,000 150, 800 433,200 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income eBook 8,000 441,200 176,480 $ 264,720 Print References 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 Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company $ 242,420 255,000 318,000 10,000 825,420 626,000 165,800 460,200 46,000 $ 90,000 111,000 281,000 20,000 502,000 517,000 131,500 385,500 0 46,000 $1,331,620 $ 887,500 Loan to Hymans Company Total assets 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 Total liabilities and stockholders' equity 318,000 44,000 85,900 447,900 205,000 652,900 349,000 329,720 678,720 $1,331,620 $ 265,000 60,000 80,500 405,500 105,000 510,500 280,000 97,000 377,000 $887,500 Equipment that had cost $31,600 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $27,700. 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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.) 264,720 Joyner Company Statement of Cash FlowsIndirect Method (partial) Net income Adjustments to convert net income to a cash basis: Depreciation $ 46,2001 Gain on sale of equipment Increase in accounts receivable (144,000)| Increase in inventory (37,000) Decrease in prepaid expenses 10,000 Increase in accounts payable 53,000 Decrease in accrued liabilities (16,000) Increase in income taxes payable 5,4001 Casni vullows as neyalive amounts.) S 264.720 Joyner Company Statement of Cash FlowsIndirect Method (partial) Net income Adjustments to convert net income to a cash basis: Depreciation $ 46,200 Gain on sale of equipment Increase in accounts receivable (144,000) Increase in inventory (37,000) Decrease in prepaid expenses 10,000 Increase in accounts payable 53,000 Decrease in accrued liabilities (16,000) Increase in income taxes payable 5,400 (82,400) $ 182,320 Net cash provided by operating activities For Year 2 Operating activities: Net cash provided by operating activities Investing activities: Additions to property, plant, and equipment Loan to Hymans Company Proceeds from sale of equipment 0 Net cash used in investing activities Financing activities: Issuance of bonds payable Issuance of common stock Cash dividends paid 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow