Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 Year 2 $ 240,200 269,000 319,000 Year 1 $ 47,800 145,000 290,000 8,500 17,000 836,700 499,800 621,000 505,000 166,100 130,900 454,900 374,100 49,000 0 $1,340,600 $873,900 $ 320,000 $252,000 41,000 56,000 85,100 80,900 446,100 388,900 199,000 118,000 645,100 506,900 343,000 277,000 352,500 90,000 695,500 367,000 $1,340,600 $873,900 Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $24,500. 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. 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: Net cash provided by operating activities Joyner Company's income statement for Year 2 follows: Sales $707,000 Cost of goods sold 68,000 Gross margin 639,000 Selling and administrative expenses 151,000 Net operating income 488,000 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes Income taxes Net income 494,000 197,600 $296,400 Its balance sheet amounts at the end of Years 1 and 2 are as follows