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 $ 709,000 345,000 364,000 150,400 213,600 7,000 220,600 88,240 $ 132,360 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 Year 2 Year 1 $ 110,260 228,000 $ 92,300 119,000 319,000 282,000 9,000 18,000 666,260 511,300 634,000 504,000 165,700 130,200 468,300 373,800 44,000 $885,100 $ 311,000 $264,000 42,000 52,000 85,200 81,100 438,200 397,100 198,000 120,000 636,200 517,100 348,000 275,000 194,360 93,000 542,360 368,000 $ 1,178,560 $885,100 $ 1,178,560 Total liabilities and stockholders' equity Equipment that had cost $31,800 and on which there was accumulated depreciation of $10,100 was sold during Year 2 for $28,700. 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Operating activities: Joyner Company Statement of Cash Flows For Year 2 3 Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 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 >