Problem 14-10 Prepare a Statement of Cash Flows; Free Cash Flow [LO14-1, LO14-2, L014-3] 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: $702,000 215,000 487,000 218,000 269,000 Gain on sale of equipment Income before taxes Income taxes Net income 8,000 277,000 110,800 $166,200 Its balance sheet amounts at the end of Years 1 and 2 are as follows Year 2 Year 1 AssetsS Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 147,200 61,400 256,000 145,000 320,000 274,000 19,000 732,700 499,400 624,000 517,000 165,400 130,900 9,500 Less accumulated depreciation Net equipment Loan to Hymans Company Total assets Liabilities and Stockholders Equity Accounts payable Accrued liabilities Income taxes payable Total c Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity property, plant, and 458,600 386,100 41,000 $1,232,300 $885,500 $ 316,000 $264,000 51,000 81,500 448,700 396,500 206,000 112, 000 654,700 508,500 345,000 280,000 97,000 577,600 377,000 48,000 84,700 urrent liabilities 232,600 $1,232,300 $885,500 Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,400 was sold during Year 2 for $28,500. 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