Joyner Companys income statement for Year 2 follows:

Sales	$	718,000
Cost of goods sold		397,000
Gross margin		321,000
Selling and administrative expenses		218,000
Net operating income		103,000
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		112,000
Income taxes		44,800
Net income	$	67,200

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

	Year 2			Year 1
Assets
Cash	$	7,600		$	80,200
Accounts receivable		260,000			130,000
Inventory		319,000			281,000
Prepaid expenses		10,000			20,000
Total current assets		596,600			511,200
Property, plant, and equipment		621,000			505,000
Less accumulated depreciation		166,800			131,100
Net property, plant, and equipment		454,200			373,900
Loan to Hymans Company		47,000			0
Total assets	$	1,097,800		$	885,100
Liabilities and Stockholders' Equity
Accounts payable	$	312,000		$	255,000
Accrued liabilities		44,000			59,000
Income taxes payable		85,200			81,100
Total current liabilities		441,200			395,100
Bonds payable		197,000			112,000
Total liabilities		638,200			507,100
Common stock		336,000			287,000
Retained earnings		123,600			91,000
Total stockholders' equity		459,600			378,000
Total liabilities and stockholders' equity	$	1,097,800		$	885,100

Equipment that had cost $31,100 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $28,200. 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.

Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.)

Joyner Company
Statement of Cash FlowsIndirect Method (partial)
		0
		$0

Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.)

Joyner Company
Statement of Cash Flows
For Year 2
Operating activities:
Investing activities:
		0
Financing activities:
		0
		0
Beginning cash and cash equivalents
Ending cash and cash equivalents		$0

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

	Free cash flow