Joyner Companys income statement for Year 2 follows:

Sales	$ 720,000
Cost of goods sold	70,000
Gross margin	650,000
Selling and administrative expenses	151,900
Net operating income	498,100
Nonoperating items:
Gain on sale of equipment	8,000
Income before taxes	506,100
Income taxes	202,440
Net income	$ 303,660

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

	Year 2	Year 1
Assets
Cash	$ 293,560	$ 66,300
Accounts receivable	221,000	131,000
Inventory	319,000	281,000
Prepaid expenses	8,000	16,000
Total current assets	841,560	494,300
Property, plant, and equipment	629,000	505,000
Less accumulated depreciation	165,600	131,100
Net property, plant, and equipment	463,400	373,900
Loan to Hymans Company	47,000	0
Total assets	$ 1,351,960	$ 868,200
Liabilities and Stockholders' Equity
Accounts payable	$ 318,000	$ 250,000
Accrued liabilities	49,000	51,000
Income taxes payable	85,100	81,200
Total current liabilities	452,100	382,200
Bonds payable	201,000	107,000
Total liabilities	653,100	489,200
Common stock	338,000	288,000
Retained earnings	360,860	91,000
Total stockholders' equity	698,860	379,000
Total liabilities and stockholders' equity	$ 1,351,960	$ 868,200

Equipment that had cost $31,600 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $29,400. 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.

Required 1 ed 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.) $ 303,660 Joyner Company Statement of Cash FlowsIndirect Method (partial) Net income Adjustments to convert net income to a cash basis: Depreciation 44,700 Gain on sale of equipment (8,000) Increase in inventory (38,000) Increase in accounts receivable (90,000) Decrease in prepaid expenses 8,000 Decrease in accounts payable 68,000 Increase in accrued liabilities (2,000) Decrease in income taxes payable 3,900 (13,400) 290,260 Net cash provided by operating activities $ Prepare a statement of cash flows for Year 2. (List 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: 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