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 $ 711,000 229,000 482,000 151,300 330,700 7,000 337,700 135,080 $ 202,620 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Accounts receivable Year 2 Year 1 $ 178,720 228,000 $ 57,700 147,000 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 320,000 282,000 9,500 19,000 736,220 505,700 624,000 506,000 166,200 130,400 457,800 375,600 49,000 $ 1,243,020 $ 312,000 45,000 85,800 0 $ 881,300 $ 260,000 54,000 80,300 442,800 394,300 198,000 104,000 640,800 498,300 332,000 284,000 270,220 99,000 602,220 $ 1,243,020 383,000 $ 881,300 Equipment that had cost $31,300 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $26,700. 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.