Chapter 15 C Saved 3 Joyner Company's income statement for Year 2 follows: 4 points $ 707,000 379,000 328,000 151,600 176,400 eBook 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 Print 6,000 182,400 54,720 $ 127,680 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 104,680 226,000 319,000 8,500 658,180 626,000 166,500 459,500 46,000 $1,163,680 $ 69,100 138,000 283,000 17,000 507,100 513,000 130,300 382,700 $ 889,800 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 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 $ 314,000 46,000 84,100 444,100 193,000 637,100 337,000 189,580 526,580 $1,163,680 $ 255,000 56,000 80,800 391,800 117,000 508,800 286,000 95,000 381,000 $889,800 Equipment that had cost $30,500 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $24,900. 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. Required 1 Required 2 Required 3 Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 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