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 $ 706,000 165,000 541,000 218,000 323,000 7,000 330,000 132,000 $198,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 1 $ 93,800 115,000 284,000 17,000 509,800 507,000 131,800 375,200 $885,000 Year 2 Assets Cash $ 144,100 Accounts receivable 256,000 Inventory 320,000 Prepaid expenses 8,500 Total current assets 728,600 Property, plant, and equipment 639,000 Less accumulated depreciation 166,800 Net property, plant, and 472,200 equipment Loan to Hymans Company 42,000 Total assets $1,242,800 Liabilities and Stockholders' Equity Accounts payable $ 311,000 Accrued liabilities 46,000 Income taxes payable 85,900 Total current liabilities 442,900 Bonds payable 192,000 Total liabilities 634,900 349,000 Retained earnings 258,900 Total stockholders' equity 607,900 Total liabilities and $1,242,800 stockholders' equity $263,000 53,000 80,000 396,000 116,000 512,000 280,000 93,000 373,000 $885,000 Equipment that had cost $31,300 and on which there was accumulated depreciation of $10,300 was sold during Year 2 for $28,000. 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. 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 FlowsIndirect Method (partial) 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 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