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 $ 915,000 503,250 411,750 332,000 79,750 7,000 86,750 26,025 $ 60,725 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 314,000 $ -34,075 247,000 $ -5,400 173,000 258,000 8,000 16,000 534,925 441,600 518,000 402,000 129,500 120,600 388,500 35,000 $ 958,425 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities $ 308,000 22,000 Income taxes payable 42,000 Total current liabilities 372,000 281,400 0 $ 723,000 $ 248,000 33,000 39,000 320,000 Bonds payable 187,000 68,000 Total liabilities 559,000 388,000 Common stock 285,000 250,000 Retained earnings 114,425 85,000 Total stockholders' equity Total liabilities and stockholders' equity 399,425 $ 958,425 335,000 $ 723,000 Equipment that had cost $37,000 and on which there was accumulated depreciation of $28,000 was sold during Year 2 for $16,000. 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.