Joyner Company's income statement for Year 2 follows: Sales $712,000 76,000 636,000 217,000 419,000 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment 10,000 Income before taxes 429,000 171,600 $257,400 Income taxes Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 1 Year 2 Assets Cash $ 42,500 215,100 Accounts receivable 256,000 320,000 146,000 278,000 21,000 Inventory Prepaid expenses 10,500 487,500 516,000 801,600 Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company 631,000 165,700 130,500 385,500 465, 300 47,000 $1,313,900 $873,000 Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable 2$ $263,000 53,000 82,000 316,000 42,000 84,600 Total current liabilities 442,600 204, 000 398,000 102.000 Bonds payable Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets $ 215,100 256,000 320,000 10,500 Cash $42,500 146,000 Accounts receivable Inventory Prepaid expenses Total current assets 278,000 21,000 801,600 631,000 165,700 465,300 487,500 516,000 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company 130,500 385,500 47,000 $1,313,900 $873,000 Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities $ 316,000 42,000 84,600 $263,000 53,000 82,000 Income taxes payable Total current liabilities 442,600 398,000 Bonds payable Total liabilities 204,000 646,600 102,000 500,000 Common stock 274,000 99,000 342,00 Retained earnings Total stockholders' equity Total liabilities and stockholders' 325,300 667,300 373,000 $873,000 $1,313,900 equity Equipment that had cost $30,500 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $28,600. 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. 3. Compute the tree casn TIOW Tor rear 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 Statement of Cash Flows-Indirect Method (partial) 3. Compute the free casn Tiow Tor year 2. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents