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

Sales $ $713,000$

Cost of goods sold $271,000$

Gross margin $442,000$

Selling and administrative expenses $151,900$

Net operating income $290,100$

Nonoperating items:

Gain on sale of equipment $7,000$

Income before taxes $297,100$

Income taxes $89,130$

Net income $ $207,970$

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

Year $2$ Year $1$

Assets

Cash $ $175,270$ $ $57,700$

Accounts receivable $225,000139,000$

Inventory $319,000272,000$

Prepaid expenses $8,00016,000$

Total current assets $727,270484,700$

Property, plant, and equipment $631,000512,000$

Less accumulated depreciation $165,000130,100$

Net property, plant, and equipment $466,000381,900$

Loan to Hymans Company $46,0000$

Total assets $ $1,239,270$ $ $866,600$

Liabilities and Stockholders' Equity

Accounts payable $ $312,000$ $ $256,000$

Accrued liabilities $43,00053,000$

Income taxes payable $84,20080,600$

Total current liabilities $439,200389,600$

Bonds payable $191,000101,000$

Total liabilities $630,200490,600$

Common stock $336,000279,000$

Retained earnings $273,07097,000$

Total stockholders' equity $609,070376,000$

Total liabilities and stockholders' equity $ $1,239,270$ $ $866,600$

Equipment that had cost $$30,600$ and on which there was accumulated depreciation of $$11,100$ was sold during Year $2$ for $$26,500.$ 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 $2.$