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 $ 711,000 278,000 433,000 151,500 281,500 6,000 287,500 86,250 $ 201,250 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 $ 151,650 230,000 $ 64,100 129,000 275,000 319,000 10,500 21,000 711,150 489,100 640,000 514,000 166,700 131,700 473,300 382,300 41,000 $ 1,225,450 $ 311,000 42,000 0 $ 871,400 $ 258,000 57,000 80,400 84,300 437,300 395,400 200,000 114,000 637,300 509,400 330,000 272,000 258,150 90,000 588,150 362,000 $ 1,225,450 $ 871,400 Total liabilities and stockholders' equity Equipment that had cost $30,600 and on which there was accumulated depreciation of $11,800 was sold during Year 2 for $24,800. 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.