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 $ 711,000 261,000 450,000 151,700 298,300 6,000 304,300 121,720 $ 182,580 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 $ 169,080 226,000 $ 87,100 116,000 271,000 17,000 318,000 8,500 721,580 491,100 633,000 514,000 166,700 131,400 466,300 382,600 46,000 0 $ 1,233,880 $ 312,000 50,000 $ 873,700 $ 255,000 52,000 85,600 81,700 447,600 388,700 199,000 115,000 646,600 503,700 339,000 272,000 248,280 98,000 587,280 370,000 $ 1,233,880 $ 873,700 Total liabilities and stockholders' equity Equipment that had cost $31,100 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $25,200. 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.