Joyner Company's income statement for Year 2 follows: $ 716,000 57,000 659,000 150,700 508,300 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 6,000 514,300 205,720 $ 308,580 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 284,180 224,000 320,000 11,000 839, 180 635,000 165,800 469,200 44,000 $1,352,380 $ 59,900 115,000 279,000 22,000 475,900 516,000 130,600 385,400 0 $861,300 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 41,000 85,000 441,000 207,000 648,000 338,000 366, 380 704, 380 $1,352,380 $256,000 52,000 81,300 389,300 101,000 490,300 281,000 90,000 371,000 $861,300 Equipment that had cost $30,100 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $25,300. 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 308,580 $ 46,000 (6,000) Adjustments to convert net income to a cash basis: Depreciation Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable 109,000 41,000 (11,000) 59,000 11,000 3,700 252,700 $ 561,280 Net cash provided by operating activities Joyner Company Statement of Cash Flows $ 561,280 For Year 2 Operating activities: Net cash provided by operating activities Investing activities: Additions to property, plant, and equipment Loan to Hymans Company Gain on sale of equipment 25,300 25,300 Financing activities: Issuance of common stock Cash dividends paid Issuance of bonds payable 0 Net decrease in cash 586,580 Beginning cash and cash equivalents Ending cash and cash equivalents $ 586,580 Required 1 Required 2 Required 3 Compute the free cash flow for Year 2. (Negat Free cash flow