Equipment that had cost $30,100 and on which there was accumulated depreciation of $11,400 was sold during Year 2 for $28,700. 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 for operating activities for Year 2. (Negative amount should be indicated by a minus sign.)

2.	Prepare a statement of cash flows for Year 2. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

3.	Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)

Foxboro Company's income statement for Year 2 follows Foxboro Company $718,000 157,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Netoperating income 217,000 342,000 0,000 Gain on sale ofequipment Income before taxes Income tawes 105,800 Netincome $248.400 Its balance sheet amounts at the end of Years 1 and 2 are as follows Foxboro Company Balance Sheet Year 2 Year 1 Assets Cash S 173,800$ 70,800 272,000 143,0O0 18,000 274,000 ,000 18,000 Inventory Prepaid expenses Total current assets 772,800 505800 631,000 515,000 185,200 131,500 Plantand equipment Net plantand equipment Loan to Harker Company Total assets 485,800 383,500 49,000 51,287800 $889,100 Liabilities and Stockholders' equity Accounts payable Accrued liabilities Income taxes payable 310,000 $286,000 45,000 50,000 84,700 1100 Total current liabilities Bonds payable 439,700 397.100 193,000 118,000 Total liabilities 832,700 515,100 Common stock Retained earnings 343.000 276,000 11,900 98,000 Total stockholders equity Total liabilities and stockholders equity 854,900 374,000 1287800 $889,100