Foxboro Companys income statement for Year 2 follows:

Foxboro Company Income Statement
Sales	$	707,000
Cost of goods sold		320,000
Gross margin		387,000
Selling and administrative expenses		216,000
Net operating income		171,000
Gain on sale of equipment		6,000
Income before taxes		177,000
Income taxes		70,800
Net income	$	106,200

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	$	36,400	$	56,100
Accounts receivable		269,000		131,000
Inventory		319,000		281,000
Prepaid expenses		8,500		17,000
Total current assets		632,900		485,100
Plant and equipment		626,000		505,000
Accumulated depreciation		165,800		130,300
Net plant and equipment		460,200		374,700
Loan to Harker Company		47,000		0
Total assets	$	1,140,100	$	859,800
Liabilities and Stockholders' Equity
Accounts payable	$	318,000	$	257,000
Accrued liabilities		41,000		51,000
Income taxes payable		85,700		80,800
Total current liabilities		444,700		388,800
Bonds payable		193,000		102,000
Total liabilities		637,700		490,800
Common stock		333,000		273,000
Retained earnings		169,400		96,000
Total stockholders' equity		502,400		369,000
Total liabilities and stockholders' equity	$	1,140,100	$	859,800

Equipment that had cost $31,400 and on which there was accumulated depreciation of $10,100 was sold during Year 2 for $27,300. 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. Omit the "$" sign in your response.)

Net cash(Click to select)provided byused inoperating activities

$

2.	Prepare a statement of cash flows for Year 2.(Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Foxboro Company Statement of Cash Flows
Operating activities:
(Click to select)Net incomeNet loss		$
Adjustments to convert net income to cash basis:
(Click to select)Decrease in accounts receivableIncrease in accounts receivableDecrease in accounts payableDecrease in accrued liabilitiesIncrease in accounts payableIncrease in inventoryDecrease in prepaid expensesDepreciationIncrease in accrued liabilitiesIncrease in income taxes payableDecrease in income taxes payableGain on sale of equipmentIncrease in prepaid expensesDecrease in inventory	$
(Click to select)Decrease in inventoryDecrease in accounts receivableIncrease in accrued liabilitiesDecrease in prepaid expensesDecrease in income taxes payableDecrease in accounts payableIncrease in income taxes payableIncrease in prepaid expensesIncrease in inventoryDepreciationGain on sale of equipmentIncrease in accounts payableIncrease in accounts receivableDecrease in accrued liabilities
(Click to select)Decrease in accrued liabilitiesIncrease in prepaid expensesDepreciationDecrease in inventoryDecrease in prepaid expensesIncrease in accounts payableIncrease in accounts receivableIncrease in accrued liabilitiesIncrease in inventoryDecrease in accounts payableIncrease in income taxes payableGain on sale of equipmentDecrease in income taxes payableDecrease in accounts receivable
(Click to select)Decrease in income taxes payableGain on sale of equipmentIncrease in accrued liabilitiesIncrease in accounts payableDecrease in accounts payableDecrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts receivableDepreciationDecrease in inventoryIncrease in income taxes payableDecrease in prepaid expensesDecrease in accrued liabilities
(Click to select)Increase in accounts payableDecrease in income taxes payableDepreciationIncrease in inventoryIncrease in prepaid expensesIncrease in accounts receivableDecrease in inventoryDecrease in prepaid expensesDecrease in accrued liabilitiesIncrease in accrued liabilitiesDecrease in accounts payableIncrease in income taxes payableGain on sale of equipmentDecrease in accounts receivable
(Click to select)Increase in accounts payableGain on sale of equipmentIncrease in accounts receivableDecrease in accounts receivableDepreciationIncrease in inventoryIncrease in income taxes payableIncrease in accrued liabilitiesDecrease in accrued liabilitiesDecrease in prepaid expensesDecrease in inventoryDecrease in accounts payableDecrease in income taxes payableIncrease in prepaid expenses
(Click to select)Increase in accrued liabilitiesGain on sale of equipmentDecrease in accrued liabilitiesDecrease in accounts receivableIncrease in inventoryIncrease in prepaid expensesDecrease in inventoryIncrease in accounts payableDepreciationDecrease in prepaid expensesDecrease in accounts payableIncrease in accounts receivableIncrease in income taxes payableDecrease in income taxes payable
(Click to select)Increase in income taxes payableDecrease in accounts payableIncrease in prepaid expensesIncrease in accounts receivableIncrease in inventoryDepreciationIncrease in accounts payableIncrease in accrued liabilitiesDecrease in prepaid expensesDecrease in accrued liabilitiesGain on sale of equipmentDecrease in accounts receivableDecrease in income taxes payableDecrease in inventory
Net cash(Click to select)provided byused inoperating activities
Investing activities:
(Click to select)Increase in prepaid expensesDecrease in accounts receivableCash dividendsProceeds from sale of equipmentDecrease in prepaid expensesIncrease in accounts receivableDecrease in accounts payableIncrease in accounts payableIssuance of bonds payableDepreciationLoan to Harker CompanyIncrease in inventoryAdditions to plant and equipmentDecrease in inventory
(Click to select)Increase in accounts receivableIncrease in accounts payableDecrease in accounts receivableDecrease in accounts payableIncrease in inventoryIncrease in prepaid expensesLoan to Harker CompanyCash dividendsDepreciationProceeds from sale of equipmentDecrease in prepaid expensesDecrease in inventoryAdditions to plant and equipmentIssuance of bonds payable
(Click to select)Loan to Harker CompanyDecrease in inventoryCash dividendsProceeds from sale of equipmentIncrease in prepaid expensesDepreciationDecrease in accounts receivableDecrease in prepaid expensesIncrease in accounts receivableIncrease in accounts payableDecrease in accounts payableAdditions to plant and equipmentIssuance of bonds payableIncrease in inventory
Net cash(Click to select)used inprovided byinvesting activities
Financing activities:
(Click to select)Issuance of bonds payableCash dividendsDecrease in accounts payableAdditions to plant and equipmentIncrease in accounts receivableDecrease in accounts receivableIssuance of common stockIncrease in inventoryDecrease in prepaid expensesDecrease in inventoryIncrease in accounts payableProceeds from sale of equipmentIncrease in prepaid expensesLoan to Harker Company
(Click to select)Increase in prepaid expensesIncrease in accounts receivableIssuance of bonds payableDecrease in accounts receivableDecrease in accounts payableAdditions to plant and equipmentIssuance of common stockIncrease in inventoryProceeds from sale of equipmentLoan to Harker CompanyDecrease in inventoryIncrease in accounts payableCash dividendsDecrease in prepaid expenses
(Click to select)Increase in inventoryDecrease in accounts receivableIssuance of common stockIncrease in prepaid expensesLoan to Harker CompanyIssuance of bonds payableIncrease in accounts receivableDecrease in prepaid expensesProceeds from sale of equipmentIncrease in accounts payableDecrease in accounts payableAdditions to plant and equipmentCash dividendsDecrease in inventory
Net cash(Click to select)provided byused infinancing activities
(Click to select)Net decrease in cashNet increase in cash
Cash balance, beginning of year
Cash balance, end of year		$

3.	Compute the free cash flow for Year 2.(Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

Free cash flow

$