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 $ 703,000 345,000 358,000 150,300 207,700 6,000 213,700 85,480 $ 128,220 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 Total stockholders' equity $ 96,820 227,000 $ 79,200 127,000 277,000 320,000 9,500 19,000 653,320 502,200 636,000 507,000 166,800 131,700 469,200 49,000 375,300 $ 1,171,520 $ 313,000 49,000 85,400 0 $ 877,500 $ 267,000 53,000 80,500 447,400 400,500 202,000 113,000 649,400 513,500 337,000 274,000 185,120 90,000 522,120 364,000 $ 1,171,520 $ 877,500 Total liabilities and stockholders' equity Equipment that had cost $31,500 and on which there was accumulated depreciation of $10,800 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.