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 $ 714,000 276,000 438,000 218,000 220,000 8,000 228,000 91,200 $ 136,800 Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 84,200 264,000 320,000 8,500 676,700 627,000 166,500 460,500 44,000 $1,181,200 $ 94,900 126,000 286,000 17,000 523,900 507,000 131,900 375, 100 0 $899,000 Assets Cash and cash equivalents 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 $ 316,000 49,000 85,200 450, 200 200,000 650, 200 332,000 199,000 531,000 $1,181,200 $ 260,000 58,000 82,000 400,000 116,000 516,000 288,000 95,000 383,000 $899,000 Equipment that had cost $30,700 and on which there was accumulated depreciation of $11,200 was sold during Year 2 for $27,500. 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. 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 FlowsIndirect Method (partial) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 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