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 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 $ 211,860 252,000 319,000 9,500 792,360 621,000 165,800 455,200 41,000 $1,288,560 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 $710,000 182,000 528,000 151,900 376,100 7,000 383,100 153,240 $229,860 2. Prepare a statement of cash flows for Year 2. 3. Compute the free cash flow for Year 2. $ 317,000 46,000 85,800 448,800 207,000 Year 1 $ 90,900 111,000 279,000 19,000 499,900 511,000 130, 100 380,900 0 $880,800 $254,000 53,000 81,800 388,800 112,000 655,800 500,800 347,000 290,000 285,760 90,000 632,760 380,000 $1,288,560 $880,800 Equipment that had cost $31,700 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $27,900. 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.