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 $ 702,000 121,000 581,000 151,500 429,500 9,000 438,500 131,550 $ 306,950 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 $ 275,850 228,000 319,000 8,500 831, 350 628,000 165,000 463,000 45,000 $1,339,350 $ 66,300 133,000 279,800 17,000 495, 300 517,000 180, 200 386, 800 $882, 100 $314,000 45,000 84,500 443,500 193,000 $ 261,000 56,000 81,100 398, 100 113,000 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 $ 275,850 228,800 319,000 8,500 831, 350 628,000 165,000 463,000 45,000 $1,339,350 $ 66,300 133,000 279,000 17,000 495, 300 517,000 130,280 386.800 e $882, 189 $314,000 45,000 84.500 443,500 193,000 636,500 335,000 367,850 702,850 $1,339,350 $ 261,000 56,000 81,100 398, 100 113, eee 511, 100 279,900 92,000 371,000 $882,100 Equipment that had cost $30,700 and on which there was accumulated depreciation of $11700 was sold during Year 2 for $28.000. 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