Joyner Company's income statement for Year 2 follows: $ 701,000 146,000 555,000 217,000 338,000 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 7,000 345,000 138,000 $ 207,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 184,900 252,000 320,000 10,500 767,400 627,000 166,800 460,200 41,000 $1,268,600 $ 69,300 119,000 276,000 21,000 485,300 503,000 131,600 371,400 0 $856,700 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 $ 316,000 47,000 85,800 448,800 204,000 652,800 349,000 266,800 615,800 $1,268,600 $250,000 56,000 80,700 386,700 102,000 488,700 277,000 91,000 368,000 $856,700 Equipment that had cost $31,300 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $27,500. 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 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.) Joyner Company Statement of Cash Flows-Indirect Method (partial)