Problem 12-10A Prepare a Statement of Cash Flows; Free Cash Flow [LO12-1, L012-2, LO12-3] Joyner Company's income statement for Year 2 follows: 703,000 Sales Cost of goods sold 312,000 391,000 Gross margin 217,000 Selling and administrative expenses Net operating income 174.000 Gain on sale of equipment 8,000 Income before taxes 182,000 54,600 Income taxes 127,400 Net income