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 Assets Cash Accounts receivable Inventory Its balance sheet amounts at the end of Years 1 and 2 are as follows: 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 $ 720,000 77,000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 643,000 151,900 491, 100 10,000 501, 100 150,330 $ 350,770 Year 2 $ 304,570 258,000 319,000 8,500 890,070 634,000 166,400 467,600 47,000 $1,404,670 $ 313,000 47,000 84,400 444,400 198,000 642,400 350,000 412,270 762,270 $1,404,670 Year 1 $ 53,800 140,000 285,000 17,000 495,800 511,000 130,800 380, 200 e $876,000 $ 251,000 52,000 81,000 384,000 119,000 503,000 278,000 95,000 373,000 $ 876,000 Equipment that had cost $30,800 and on which there was accumulated depreciation of $10,300 was sold during Year 2 for $30,500. 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.