Joyner Company's income statement for Year 2 follows: $ 713,000 274,000 439,000 150,800 288, 200 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 7,000 295, 200 88,560 $ 206,640 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 197,540 222,000 320,000 8,500 748, 040 637,000 165,800 471,200 40,000 $1,259,240 $ 107,300 136,000 270,000 17,000 530,300 501,000 130, 100 370,900 $ 901,200 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 $ 315,000 47,000 85,500 447,500 205,000 652,500 338,000 268,740 606,740 $1,259,240 $ 268,000 57,000 80,200 405,200 115,000 520,200 284,000 97,000 381,000 $ 901,200 Equipment that had cost $31,600 and on which there was accumulated depreciation of $11,100 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 FlowsIndirect Method (partial) Net income $ 206,640 0 $ 206,640 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 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