Joyner Company's income statement for Year 2 follows: $713,000 206,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 507,000 217,000 Net operating income Gain on sale of equipment 290,000 8,000 Income before taxes 298,000 89,400 Income taxes $ 208,600 Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash Accounts receivable $ 109,700 116,000 275,000 20,000 $135,700 268,000 319,000 10,000 Inventory Prepaid expenses Total current assets 732,700 520,700 Property, plant, and equipment Less accumulated depreciation 634,000 165,500 505,000 131,300 Net property, plant, and equipment 468,500 373,700 Loan to Hymans Company 46,000 C Total assets $1,247,200 $ 894,400 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities $264,000 59,000 81,400 313,000 46,000 85,600 Income taxes payable 444,600 194,000 404,400 110,000 Total current liabilities Bonds payable Total liabilities 638,600 514,400 Common stock 340,000 268,600 286,000 94,000 Retained earnings Total stockholders' equity 608,600 380,000 $ 894,400 $1,247,200 Total liabilities and stockholders' equity Equipment that had cost $31,500 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $27,600. 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 m should be indicated by a minus sign.) compute the net cash for operating activities for Year 2. (Negative mount 2. 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- Indirect Method For Year 2 Operating activities: Adjustments to convert net income to cash basis: Investing activities: 0 Financing activities: 0 Beginning cash and cash equivalents Ending cash and cash equivalents 3. Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow