Joyner Company's income statement for Year 2 follows: $ 713,000 131,000 582,000 151,500 430,500 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 10,000 440,500 176,200 $ 264,300 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 264,100 223,000 320,000 11,000 818,100 631,000 166,500 464,5001 48,000 $1,330,600 $ 56,400 132,000 274,000 22,eee 484,400 514,000 131,400 382,600 $ 867,000 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 $ 314,000 48,000 85,000 447,000 288,000 655, eee 349,000 326,600 675,600 $1,330, 600 $ 258,000 53,000 88,888 391,000 108,000 499,000 273,000 95,000 368,000 $ 867,000 Equipment that had cost $31,400 and on which there was accumulated depreciation of $11,800 was sold during Year 2 for $29,600. 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 cash outflows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partial) 0 $ 0 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 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 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