Problem 13-10 (Algo) Prepare a statement of Cash Flows: Free Cash Flow (L013-1, L013-2, LO13-3] 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 $ 715,000 319,000 396,000 151,800 244,200 10. Bee 254,200 76,260 $ 177,940 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 5 151,940 226,000 119,000 10,000 206,940 637,000 165,800 471,200 41,000 $1,219,140 $ 74,000 116,000 285,000 20,000 495.000 518,000 130.400 387,600 $ 882,600 $ 317,000 43,000 34,500 444,800 $ 269,000 55.000 81,600 405,600 Bonds payable 192,000 106,000 Total liabilities 636,800 511,600 Common stock 337,000 273,000 Retained earnings 245,340 98,000 Total stockholders' equity 582, 340 371,000 Total liabilities and stockholders equity $ 1,219,140 $ 882,600 Equipment that had cost $31,000 and on which there was accumulated depreciation of $11,100 was sold during Year 2 for $29.900. 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 Flows-Indirect Method (partial)