Joyner Company's income statement for Year 2 follows: Sales $713,000 Cost of goods sold 76,000 Gross margin 637,000 Selling and administrative expenses 151,500 Net operating income 485,500 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes Income taxes Net income 491,500 196,600 $294,900 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 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 $ 230,500 263,000 320,000 Year 1 $ 54,100 148,000 274,000 8,000 16,000 821,500 492,100 627,000 516,000 165,700 130,700 461,300 385,300 43,000 0 $1,325,800 $877,400 Liabilities and Stockholders' Equity Accounts payable $ 311,000 $252,000 Accrued liabilities 43,000 59,000 Income taxes payable 84,600 80,400 Total current liabilities Bonds payable Total liabilities Common stock Retained earnings 438,600 391,400 201,000 119,000 639,600 510,400 335,000 277,000 351,200 90,000 Total stockholders' equity Total liabilities and stockholders' equity 686,200 367,000 $1,325,800 $877,400 Equipment that had cost $31,500 and on which there was accumulated depreciation of $10,100 was sold during Year 2 for $27,400. 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.