Joyner Company's income statement for Year 2 follows: Equipment that had cost $31,600 and on which there was accumulated depreciation of $11,400 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. $ 719,000 186,000 533,000 152,000 381,000 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 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. 7,000 388,000 155,200 $ 232,800 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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.) Year 2 Year 1 Joyner Company Statement of Cash Flows-Indirect Method (partial) $ 215,000 222,000 318,000 8,500 763,500 635,000 166,200 468,800 43,000 $1,275,300 $ 76,900 130,000 273,000 17,000 496,900 506,000 131,000 375,000 0 $871,900 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 $ 316,000 42,000 86,000 444,000 196,000 640,000 346,000 289,300 635,300 $1,275,300 $264,000 59,000 81,900 404,900 102,000 506,900 275,000 90,000 365,000 $871,900