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

Sales $ $715,000$

Cost of goods sold $332,000$

Gross margin $383,000$

Selling and administrative expenses $151,600$

Net operating income $231,400$

Nonoperating items:

Gain on sale of equipment $9,000$

Income before taxes $240,400$

Income taxes $96,160$

Net income $ $144,240$

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

Year $2$ Year $1$

Assets

Cash $ $124,340$ $ $74,600$

Accounts receivable $225,000114,000$

Inventory $319,000272,000$

Prepaid expenses $10,50021,000$

Total current assets $678,840481,600$

Property, plant, and equipment $631,000520,000$

Less accumulated depreciation $165,300130,500$

Net property, plant, and equipment $465,700389,500$

Loan to Hymans Company $45,0000$

Total assets $ $1,189,540$ $ $871,100$

Liabilities and Stockholders' Equity

Accounts payable $ $319,000$ $ $268,000$

Accrued liabilities $47,00050,000$

Income taxes payable $85,70081,100$

Total current liabilities $451,700399,100$

Bonds payable $196,000109,000$

Total liabilities $647,700508,100$

Common stock $341,000272,000$

Retained earnings $200,84091,000$

Total stockholders' equity $541,840363,000$

Total liabilities and stockholders' equity $ $1,189,540$ $ $871,100$

Equipment that had cost $$31,000$ and on which there was accumulated depreciation of $$11,600$ was sold during Year $2$ for $$28,400.$ 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 $2.$