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 $701,000 393,000 308,000 217,000 91,000 5,000 96,000 38,400 $ 57,600 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 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 stockholds' equity $ 14,500 265,000 319,000 10,000 608,500 624,000 165,900 458, 100 40,000 $1,106,600 $ 69,900 142,000 274,000 20,000 505, 900 508,000 130,900 377,100 0 $883,000 $ 315,000 49,000 84,300 448,300 195,000 643,300 344,000 119,300 463,300 $1,106,600 $263,000 57,000 81,000 401,000 118,000 519,000 270,000 94,000 364,000 $883,000 Equipment that had cost $31,400 and on which there was accumulated depreciation of $10,200 was sold during Year 2 for $26,200. 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.) $ 57,600 Joyner Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Depreciation $ 35,000 Gain on sale of equipment Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Increase in income taxes payable + Decrease in accrued liabilities Net cash used in operating activities 35,000 $ 92,600 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 Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: + hces 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents 0 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