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 $ 705,000 80,000 625,000 151,700 473,300 6,000 479,300 191,720 $ 287,580 Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 Year 2 Year 1 320,000 10,000 $ 270,280 225,000 $ 50,200 148,000 283,000 20,000 825,280 501,200 628,000 518,000 165,400 130,400 462,600 387,600 49,000 0 $ 1,336,880 $ 888,800 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 Total liabilities and stockholders' equity $ 270,280 225,000 $ 50,200 148,000 283,000 320,000 10,000 20,000 825,280 501,200 628,000 518,000 165,400 130,400 462,600 387,600 49,000 $ 1,336,880 $314,000 48,000 e $ 888,800 $ 269,000 52,000 84,800 81,800 446,800. 402,800 197,000 101,000 643,800 503,800 339,000 287,000 354,080 98,000 693,080 385,000 $ 1,336,880 $ 888,800 Equipment that had cost $31.100 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $26.600. 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. Complete this question by entering your answers in the tabs below. 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) Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 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. 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