Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold $ 715,000 299,000 Gross margin Selling and administrative expenses 416,000 217,000 Net operating income Gain on sale of equipment 199,000 8,000 Income before taxes Income taxes 207,000 82,800 Net income $ 124,200 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 $ 92,900 $ 73,500 257,000 123,000 320,000 287,000 10,000 20,000 Total current assets 679,900 503,500 Property, plant, and equipment Less accumulated depreciation 622,000 166,600 515,000 130,600 Net property, plant, and equipment 455,400 384,400 Loan to Hymans Company 49,000 0 Total assets $1,184,300 $ 887,900 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable $ 319,000 $ 262,000 46,000 52,000 84,200 80,900 Total current liabilities Bonds payable 449,200 204,000 394,900 115,000 Total liabilities 653,200 509,900 Common stock Retained earings 345,000 186,100 283,000 95,000 Total stockholders' equity 531,100 378,000 Total liabilities and stockholders' equity $1,184,300 $ 887,900 Equipment that had cost $31,300 and on which there was accumulated depreciation of $10,000 was sold during Year 2 for $29,300. 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 for operating activities for Year 2. (Negative amount should be indicated by a minus sign.) 2. 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 - Indirect Method For Year 2 Operating activities: Adjustments to convert net income to cash basis: 0 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 3. Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow