Problem $13-10($Algo$)$ Prepare a Statement of Cash Flows; Free Cash Flow $[$LO$13-1,$ LO$13-2,$ LO$13-3]$

Joyner Company$$s income statement for Year $2$ follows:

Sales $ $920,000$

Cost of goods sold $506,000$

Gross margin $414,000$

Selling and administrative expenses $330,000$

Net operating income $84,000$

Nonoperating items:

Gain on sale of equipment $8,000$

Income before taxes $92,000$

Income taxes $27,600$

Net income $ $64,400$

Its balance sheet amounts at the end of Years $1$ and $2$ are as follows:

Year $2$ Year $1$

Assets

Cash $ $-30,450$ $ $2,600$

Accounts receivable $247,000167,000$

Inventory $305,000255,000$

Prepaid expenses $9,00018,000$

Total current assets $530,550442,600$

Property, plant, and equipment $517,000412,000$

Less accumulated depreciation $129,250123,600$

Net property, plant, and equipment $387,750288,400$

Loan to Hymans Company $41,0000$

Total assets $ $959,300$ $ $731,000$

Liabilities and Stockholders' Equity

Accounts payable $ $311,000$ $ $251,000$

Accrued liabilities $20,00034,000$

Income taxes payable $43,00043,000$

Total current liabilities $374,000328,000$

Bonds payable $185,00074,000$

Total liabilities $559,000402,000$

Common stock $285,000245,000$

Retained earnings $115,30084,000$

Total stockholders' equity $400,300329,000$

Total liabilities and stockholders' equity $ $959,300$ $ $731,000$

Equipment that had cost $$44,000$ and on which there was accumulated depreciation of $$31,000$ was sold during Year $2$ for $$21,000.$ 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 $2.$