Joyner Companys income statement for Year 2 follows:

Sales	$	701,000
Cost of goods sold		228,000
Gross margin		473,000
Selling and administrative expenses		217,000
Net operating income		256,000
Nonoperating items:
Gain on sale of equipment		7,000
Income before taxes		263,000
Income taxes		78,900
Net income	$	184,100

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

	Year 2			Year 1
Assets
Cash	$	151,300		$	103,500
Accounts receivable		256,000			119,000
Inventory		320,000			282,000
Prepaid expenses		10,000			20,000
Total current assets		737,300			524,500
Property, plant, and equipment		633,000			508,000
Less accumulated depreciation		166,100			130,800
Net property, plant, and equipment		466,900			377,200
Loan to Hymans Company		44,000			0
Total assets	$	1,248,200		$	901,700
Liabilities and Stockholders' Equity
Accounts payable	$	312,000		$	269,000
Accrued liabilities		49,000			55,000
Income taxes payable		84,800			81,700
Total current liabilities		445,800			405,700
Bonds payable		207,000			114,000
Total liabilities		652,800			519,700
Common stock		345,000			285,000
Retained earnings		250,400			97,000
Total stockholders' equity		595,400			382,000
Total liabilities and stockholders' equity	$	1,248,200		$	901,700

Equipment that had cost $30,400 and on which there was accumulated depreciation of $10,300 was sold during Year 2 for $27,100. 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.

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.) Weaver Company Statement of Cash Flows-Indirect Method (partial) 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 Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow