Joyner Company's income statement for Year 2 follows: $ 718,000 246,000 472,000 217,000 255,000 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 5,000 260,000 78,000 $ 182,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 122,700 254,000 319,000 8,500 704,200 638,000 165, 700 472,300 48,000 $1,224,500 $ 76,700 124,000 287,000 17,000 504,700 517,000 130,300 386,700 $891,400 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 Accounts payable Accrued liabilities Income taxes payable Total current liabiliti Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 318,000 50,000 85,200 453,200 193,000 646,200 333,000 245, 300 578, 300 $1,224,500 $260,000 56,000 81,400 397,400 117,000 514,400 282,000 95,000 377,000 $891,400 Equipment that had cost $31,600 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $25,900. 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