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

Sales $ $712,000$

Cost of goods sold $293,000$

Gross margin $419,000$

Selling and administrative expenses $151,400$

Net operating income $267,600$

Nonoperating items:

Gain on sale of equipment $5,000$

Income before taxes $272,600$

Income taxes $109,040$

Net income $ $163,560$

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

Year $2$ Year $1$

Assets

Cash $ $145,960$ $ $56,200$

Accounts receivable $229,000134,000$

Inventory $319,000284,000$

Prepaid expenses $9,50019,000$

Total current assets $703,460493,200$

Property, plant, and equipment $620,000511,000$

Less accumulated depreciation $166,500131,100$

Net property, plant, and equipment $453,500379,900$

Loan to Hymans Company $45,0000$

Total assets $ $1,201,960$ $ $873,100$

Liabilities and Stockholders' Equity

Accounts payable $ $311,000$ $ $252,000$

Accrued liabilities $41,00056,000$

Income taxes payable $84,60080,100$

Total current liabilities $436,600388,100$

Bonds payable $205,000113,000$

Total liabilities $641,600501,100$

Common stock $332,000274,000$

Retained earnings $228,36098,000$

Total stockholders' equity $560,360372,000$

Total liabilities and stockholders' equity $ $1,201,960$ $ $873,100$

Equipment that had cost $$31,900$ and on which there was accumulated depreciation of $$10,800$ was sold during Year $2$ for $$26,100.$ 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 $2.$