Problem $13-17($Algo$)$ Prepare a Statement of Cash Flows; Free Cash Flow $[$LO$13-1,$ LO$13-2,$ LO$13-3,$ LO$13-4,$ LO$13-5,$ LO$13-6]$

Joyner Company$$s income statement for Year $2$ follows:

Sales $ $915,000$

Cost of goods sold $503,250$

Gross margin $411,750$

Selling and administrative expenses $328,000$

Net operating income $83,750$

Nonoperating items:

Gain on sale of equipment $6,000$

Income before taxes $89,750$

Income taxes $26,925$

Net income $ $62,825$

Its balance sheet amounts at the end of Years $1$ and $2$ are as follows:

Year $2$ Year $1$

Assets

Cash and cash equivalents $ $52,575$ $ $44,100$

Accounts receivable $198,000127,000$

Inventory $293,000262,000$

Prepaid expenses $6,50013,000$

Total current assets $550,075446,100$

Property, plant, and equipment $511,000387,000$

Less accumulated depreciation $127,750116,100$

Net property, plant, and equipment $383,250270,900$

Loan to Hymans Company $45,0000$

Total assets $ $978,325$ $ $717,000$

Liabilities and Stockholders' Equity

Accounts payable $ $313,000$ $ $246,000$

Accrued liabilities $21,00028,000$

Income taxes payable $49,00043,000$

Total current liabilities $383,000317,000$

Bonds payable $197,00066,000$

Total liabilities $580,000383,000$

Common stock $285,000250,000$

Retained earnings $113,32584,000$

Total stockholders' equity $398,325334,000$

Total liabilities and stockholders' equity $ $978,325$ $ $717,000$

Equipment costing $$39,000$ with accumulated depreciation of $$27,000$ was sold during Year $2$ for $$18,000.$ The company paid a cash dividend during Year $2$ but did not retire any bonds or repurchase any of its own stock.

Required:

For Year $2$:

Determine the net cash provided by $($used in$)$ operating activities using the indirect method.

Prepare a statement of cash flows.

Compute the free cash flow.

Need additions to property plant and equipment, cash dividends paid and free cash flow to be correct.