Joyner Companys income statement for Year 2 follows:

Sales	$	710,000
Cost of goods sold		336,000
Gross margin		374,000
Selling and administrative expenses		218,000
Net operating income		156,000
Nonoperating items:
Gain on sale of equipment		7,000
Income before taxes		163,000
Income taxes		65,200
Net income	$	97,800

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

	Year 2			Year 1
Assets
Cash	$	55,700		$	56,500
Accounts receivable		268,000			141,000
Inventory		319,000			270,000
Prepaid expenses		8,500			17,000
Total current assets		651,200			484,500
Property, plant, and equipment		625,000			512,000
Less accumulated depreciation		166,700			131,000
Net property, plant, and equipment		458,300			381,000
Loan to Hymans Company		43,000			0
Total assets	$	1,152,500		$	865,500
Liabilities and Stockholders' Equity
Accounts payable	$	315,000		$	262,000
Accrued liabilities		45,000			51,000
Income taxes payable		84,800			81,500
Total current liabilities		444,800			394,500
Bonds payable		204,000			104,000
Total liabilities		648,800			498,500
Common stock		348,000			278,000
Retained earnings		155,700			89,000
Total stockholders' equity		503,700			367,000
Total liabilities and stockholders' equity	$	1,152,500		$	865,500

Equipment that had cost $31,700 and on which there was accumulated depreciation of $12,000 was sold during Year 2 for $26,700. 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 Statement of Cash Flows-Indirect Method (partial) Required 1 Required 2 > 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 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow Required 2 Required 3 >