Comparative financial statements for Weaver Company follow:

Joyner Companys income statement for Year 2 follows:

Sales	$	702,000
Cost of goods sold		334,000
Gross margin		368,000
Selling and administrative expenses		150,600
Net operating income		217,400
Nonoperating items:
Gain on sale of equipment		7,000
Income before taxes		224,400
Income taxes		67,320
Net income	$	157,080

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

	Year 2			Year 1
Assets
Cash and cash equivalents	$	150,780		$	69,900
Accounts receivable		225,000			122,000
Inventory		319,000			284,000
Prepaid expenses		9,000			18,000
Total current assets		703,780			493,900
Property, plant, and equipment		633,000			504,000
Less accumulated depreciation		166,000			130,800
Net property, plant, and equipment		467,000			373,200
Loan to Hymans Company		40,000			0
Total assets	$	1,210,780		$	867,100
Liabilities and Stockholders' Equity
Accounts payable	$	319,000		$	253,000
Accrued liabilities		50,000			59,000
Income taxes payable		85,700			80,100
Total current liabilities		454,700			392,100
Bonds payable		192,000			107,000
Total liabilities		646,700			499,100
Common stock		340,000			271,000
Retained earnings		224,080			97,000
Total stockholders' equity		564,080			368,000
Total liabilities and stockholders' equity	$	1,210,780		$	867,100

Equipment that had cost $31,000 and on which there was accumulated depreciation of $10,900 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.

Weaver Company Income Statement For This Year Ended December 31
Sales					$	752
Cost of goods sold						446
Gross margin						306
Selling and administrative expenses						221
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(3	)			4
Income before taxes						89
Income taxes						22
Net income					$	67

During this year, Weaver sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year

2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this yea