Joyner Company's income statement for Year 2 follows: Sales $704,000 Cost of goods sold 151,000 Gross margin 553,000 Selling and administrative expenses 151,300 Net operating income 401,700 Nonoperating items: Gain on sale of equipment 7,000 408,700 Income before taxes Income taxes Net income 163,480 $245,220 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 Year 2 $ 198,920 261,000 319,000 8,000 Year 1 $ 50,300 143,000 289,000 16,000 786,920 498,300 626,000 514,000 166,400 130,600 459,600 383,400 48,000 $1,294,520 0 $881,700 $ 311,000 45,000 $255,000 55,000 85,900 80,700 441,900 390,700 202,000 108,000 643,900 498,700 340,000 286,000 310,620 97,000 650,620 383,000 $1,294,520 $881,700 Equipment that had cost $30,000 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $26,200. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its own stock. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Joyner Company Net income Statement of Cash Flows-Indirect Method (partial) 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 (7,000) $ 245,220 (7,000) $ Net cash provided by operating activities 238,220