Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating incone Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income $710,000 187,000 523,000 151,400 371,600 10,000 381,600 114,480 $267, 120 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Mymans Company Total assets Liabilities and Stockholders' Fauit $ 199,620 274.000 319,000 10,500 803, 120 634,000 166,000 16800 41,000 51,312, 120 $ 92, 100 123.000 281,000 25.000 512100 503,000 131 B 371 500 $888.600 274,800 319, eee 10,500 883, 120 634,000 166,888 468,000 41,000 $1,312, 120 123,000 281, 21,eee 517,100 583,eee 131,500 371, sea @ $888,600 Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hynans Company Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total abilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 313,000 42,000 85,700 440,700 281,000 641/700 345,000 325,420 670,420 $1,312,120 $265,000 56,000 81,600 402,600 116,000 518,600 277,000 93,000 370.000 $888,600 Equipment that had cost $31,600 and on which there was accumulated depreciation of $11.900 was sold during Year 2 for $29.700 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 Required 3 Using the Indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outfiows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partiah Prepare a statement of cash flows for Year 2. (list any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities Beginning cash and cash equivalents Ending cash and cashequivalents 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 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow