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 $ 717,000 46,000 671,000 151,600 519,400 8,000 527,400 210,960 $ 316,440 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 $ 316,140 226,000 318,000 $ 77,700 120,000 286,000 9,000 18,000 869,140 501,700 622,000 513,000 166,500 130,500 455,500 382,500 46,000 0 $ 1,370,640 $ 312,000 49,000 $ 884,200 $ 267,000 51,000 84,300 81,200 445,300 399,200 201,000 109,000 646,300 508,200 346,000 282,000 378,340 94,000 724,340 $ 1,370,640 376,000 $ 884,200 Total liabilities and stockholders' equity Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,900 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 Flows-Indirect Method (partial) 0 $ 0