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: $706,00 258,000 448,000 217,000 231,000 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 9,000 240, eee 96,000 $144,000 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 103,900 252,800 318,890 9,880 682,900 625,889 166,700 458,388 43.ee $1.184.200 $ 46,280 148,888 278,888 18,888 482, 280 509, eee 131,280 377,880 $860,000 Assets Cash and cash equivalents 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 Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 315,000 41.eee 84,700 440,700 286,eee 646,700 335,eee 202, see 537.500 $257,000 58,000 81,000 396,880 101,880 497,000 273, eee 90,000 363, eee $860, eee $1,184,200 Equipment that had cost $30,700 and on which there was accumulated depreciation of $11.900 was sold during Year 2 for $27,800 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.) 144.000 Joyner Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Decrease in accrued liabilities $ 47,400 Decrease in prepaid expenses (9.000) Increase in accounts payable (112,000) Increase in inventory (40,000) 9,000 58,000 (84,100)| 3,700 84.100 84,100 41,200 185.200 Required 2 > Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as ne Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Required 1 Required 2 Required 3 Compute the free cash flow for Year 2. (Negative amount should be indicate Free cash flow