Joyner Companys income statement for Year 2 follows:

Its balance sheet amounts at the end of Years 1 and 2 are as follows:

Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,600 was sold during Year 2 for $30,300. 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 for operating activities for Year 2. (Negative amount should be indicated by a minus sign.)

2. Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)

Sales Cost of goods sold $716,000 219,000 Gross margin Selling and administrative expenses 497,000 217,000 Net operating income Gain on sale of equipment 280,000 10,000 Income before taxes Income taxes 290,000 Net income $174,000