Joyner Company's income statement for Year 2 follows: $ 715,000 163,000 552,000 150,400 401,600 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 7,000 408,600 163, 440 $ 245, 160 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 255,960 220,000 320,000 9,500 805,460 623,000 166,300 456,700 45,000 $1,307,160 $ 102,800 119,000 281,000 19,000 521,800 503,000 130,500 372,500 0 $ 894,300 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 $ 313,000 50,000 85,900 448,900 205,000 653,900 344,000 309,260 653,260 $1,307,160 $ 255,000 56,000 81,300 392,300 116,000 508,300 289,000 97,000 386,000 $ 894,300 Equipment that had cost $30,000 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $25,400. 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