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 $ 707,000 381,000 326,000 151,300 174,700 9,000 183,700 73,480 $ 110,220 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 $ 95,320 224,000 319,000 10,000 $ 81,600 144,000 274,000 20,000 648,320 519,600 635,000 509,000 165,500 131,300 469,500 377,700 44,000 $ 1,161,820 $ 317,000 43,000 e $ 897,300 $ 254,000 56,000 84,400 81,300 444,400 391,300 209,000 118,000 653,400 509,300 330,000 289,000 178,420 99,000 508,420 388,000 $1,161,820 $ 897,300 Total stockholders' equity Total liabilities and stockholders' equity Equipment that had cost $30,400 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $28,100. 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.