Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $ 716,000 57,000 659,000 217,000 442,000 9,000 451,000 180,400 $ 270,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 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 $ 219,500 274,000 318,000 9,500 821,000 622,000 166,400 455,600 50,000 $1,326, 600 $ 88,800 113,000 277,000 19,000 497,800 511,000 130, 600 380,400 $878, 200 $ 310,000 41,000 84,600 435,600 210,000 645,600 349,000 332,000 681,000 $269,000 54,000 80,200 403,200 101,000 584,200 280,000 94,000 374,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 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 $ 219,500 274,00 318,000 9,500 821,000 622,000 166,400 455,600 50,000 $1,326, 6e0 $ 88,800 113,000 277,000 19.000 497,800 511,000 130,600 380,400 $878, 280 $ 310,000 41,000 84,602 435,600 210,000 645,680 349,000 332,000 681,000 $1,326,682 $269,000 54,000 80, 2ee 403,200 101,080 584, 280 280,000 94,000 374,000 $878,200 Equipment that had cost $31.800 and on which there was accumulated depreciation of $11.400 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 Complete this question by entering your answers in the tabs below. 1 Using the inairect method, compute the net cash provided by/usea in operauiy allviles lul ICUI 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.) $ 442,000 Joyner Company Statement of Cash Flows-Indirect Method (partial) Net income 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 Net cash provided by operating activities $ 442.000 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 The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurchase any of its 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow Required 2 Required 3