Problem 15-10 (Algo) Prepare a Statement of Cash Flows; Free Cash Flow [LO15-1, LO15-2, LO15-3] 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 $ 703,000 255,000 448,000 151,700 296,300 8,000 304,300 91,290 $ 213,010 Its balance sheet amounts at the end of Years 1 and 2 are as follows: ts balance sheet amounts at the end of Years 1 and 2 are as follows: 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. Bonds payable Total liabilities Common stock Year 2 $ 187,110 230,000 320,000 Year 1 $ 51,300 145,000 287,000 11,000 22,000 748,110 505,300 634,000 505,000 165,900 130,400 468,100 42,000 $ 1,258,210 $ 314,000 40,000 374,600 $ 879,900 $ 253,000 53,000 80,900 386,900 84,100 438,100 206,000 118,000 644,100 504,900 346,000 285,000 268,110 90,000 375,000 $ 879,900 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 614,110 $ 1,258,210 Equipment that had cost $30,200 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $26,600. The company declared and paid a cash dividend during Year 2. It did not retire any bonds or repurihase 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) 0 $ Required 2 > Operating activities: Investing activities: Joyner Company Statement of Cash Flows For Year 2 Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents any deduction in cash and cash outflow 0 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3. Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow < Required 2 Required 3