Joyner Company's income statement for Year 2 follows: $ 703,000 383,000 320,000 151,700 168,300 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 8,000 176,300 70,520 $ 105,780 Year 2 Year 1 $ $ 40,680 253,000 319,000 10,500 623,180 635,000 165,500 469,500 47,000 $1,139,680 $108,300 110,000 276,000 21,000 515,300 500,000 131,500 368,500 0 $883,800 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 $ $ 313,000 44,000 84,700 441,700 197,000 638, 700 337,000 163,980 500, 980 $1,139,680 $253,000 59,000 80,800 392,800 116,000 508,800 284,000 91,000 375,000 $883,800 Equipment that had cost $31,700 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $27,800. 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