Joyner Company's income statement for Year 2 follows: $ 711,000 211,000 500,000 152,000 348,000 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 6,000 354,000 141,600 $ 212,400 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 199,400 229,000 320,000 8,000 756,400 626,000 165,800 460,200 41,000 $1,257,600 $ 60,300 139,000 284,000 16,000 499, 300 508,000 131,300 376,700 0 $ 876,000 Assets Cash and cash equivalents 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 $ 317,000 44,000 84,800 445,800 193,000 638,800 346,000 272,800 618,800 $1,257,600 $ 262,000 53,000 82,000 397,000 112,000 509,000 274,000 93,000 367,000 $ 876,000 Equipment that had cost $31,900 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $26,600 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 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) 0 $ 0 Required 1 Required 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: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 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