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 $ 707,000 328,000 379,000 150,800 228,200 6,000 234,200 93,680 $ 140,520 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Accounts receivable Year 2 Year 1 $ 115,120 228,000 318,000 $ 72,200 133,000 Inventory 285,000 Prepaid expenses 8,500 17,000 Total current assets 669,620 507,200 Property, plant, and equipment 640,000 513,000 Less accumulated depreciation 166,100 131,500 Net property, plant, and equipment 473,900 381,500 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 473,980 41,000 $ 1,184,520 $ 314,000 42,000 381,500 0 $ 888,700 $ 265,000 57,000 85,900 80,700 441,900 402,700 208,000 117,000 649,900 519,700 334,000 274,000 200,620 534,620 Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 1,184,520 95,000 369,000 $ 888,700 Equipment that had cost $30,500 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $25,800. 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. 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 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.) Operating activities: Joyner Company Statement of Cash Flows For Year 2 Investing activities: Financing activities: 0 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 0 0 0 $ 0 13 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 < Required 2 Required 3>