Joyner Company's income statement for Year 2 follows: $ 718,000 279,000 439,000 150, 100 288,900 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 7,000 295,900 118,360 $ 177,540 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 $ 145, 240 224,000 320,000 10,000 699,240 635,000 165,300 469,700 49,000 $1,217,940 $ 40,100 146,000 273,000 20,000 479, 100 508,000 130,000 378,000 0 $ 857,100 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 $ 316,000 46,000 85,700 447,700 196,000 643,700 333,000 241, 240 574,240 $1,217,940 $ 251,000 51,000 80,100 382,100 106,000 488,100 271,000 98,000 369,000 $ 857,100 Equipment that had cost $30,400 and on which there was accumulated depreciation of $10,300 was sold during Year 2 for $27,100. 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.) Joyner Company Statement of Cash Flows-Indirect Method (partial) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 cash equivalents 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