Joyner Company's income statement for Year 2 follows: $ 719,000 61,000 658,000 151,500 506,500 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 5,000 511,500 153,450 $ 358,050 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 350,250 225,000 320,000 9,000 904,250 634,000 165,400 468,600 48,000 $1,420,850 $ 89,000 123,000 270,000 18,000 500,000 509,000 131,300 377,700 @ $877,700 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 $ 320,000 50,000 84,200 454,200 201,000 655,200 348,000 417,650 765,650 $1,420,850 $260,000 52,000 80, 700 392,700 106,000 498,700 288,000 91,000 379,000 $877,700 Equipment that had cost $30,200 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $24,700. 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 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) Net income 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 0 $ 0 Required 1 Required 2 Required 3 Prepare a statement of cash flows for Year 2. (ust 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: Issuance of common stock Issuance of bonds payable Cash dividends pald 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 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