$ 719,000 280,000 439,000 150,400 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 288,600 9,000 297,600 119,040 $ 178,560 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 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 $ 142,560 227,000 319,000 $ 59,100 131,000 284,000 9,000 18,000 697,560 492,100 638,000 512,000 165,900 131,700 472,100 380,300 41,000 $ 1,210,660 $ 319,000 40,000 85,700 $ 872,400 $ 257,000 52,000 Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 80,400 444,700 389,400 200,000 119,000 644,700 508,400 331,000 274,000 234,960 90,000 565,960 364,000 $ 1,210,660 $ 872,400 Equipment that had cost $31,400 and on which there was accumulated depreciation of $10,300 was sold during Year 2 for $30,100. 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 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) < Required 1 Required 2 > 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 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents For Year 2 Required 1 Required 2 Required 3 < Required 1 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 >