Joyner Company's income statement for Year 2 follows: $ 715,000 192,000 523,000 150,400 372,600 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 8,000 380,600 152,240 $ 228,360 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 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 205, 860 221,000 320,000 11,000 757,860 634,000 165,300 468, 700 47,000 $ 43,200 142,000 282,000 22,000 489,200 519,000 130,000 389,000 0 $1,273,560 $878,200 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 43,000 85,600 445,600 201,000 646,600 337,000 289,960 626,960 $1,273,560 $ 260,000 56,000 80, 200 396,200 115,000 511,200 272,000 95,000 367,000 $ 878,200 Equipment that had cost $30,100 and on which there was accumulated depreciation of $10,900 was sold during Year 2 for $27,200. 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) Required 1 Required 2 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 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