Problem 13-10 Prepare a Statement of Cash Flows; Free Cash Flow [LO13-1, LO13-2, LO13-3] Joyner Company's income statement for Year 2 follows: Sales 717,000 317,000 400,000 218,000 182,000 Cose of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: 7,000 189,000 56, 700 $132,300 Gain on sale of equipment Income before taxes Income taxes Net income Its balance sheet amounts at the end of Years 1 and 2 are as follows: 1 Year Year 2 Assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment 92,700 58,000 146,000 318,000 276,000 251,000 11,00021000 672,700502,000 501,000 166, 500 130,700 466,500370,300 633,000 Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets 45,000 $1,184,200 $872,300 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 312,000 $256,000 54,000 81,300 391,300 44,000 84,700 440,700 1 300 107.000 204,000 42.000 276,000 197,50098,000 539,500374,000 $1,184,200 $872,300 Equipment that had cost $30,500 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $25,600. 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 Required 1 Required 2 Required3 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) 0 0 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash