Joyner Companys income statement for Year 2 follows:

Sales	$	715,000
Cost of goods sold		231,000
Gross margin		484,000
Selling and administrative expenses		217,000
Net operating income		267,000
Nonoperating items:
Gain on sale of equipment		7,000
Income before taxes		274,000
Income taxes		109,600
Net income	$	164,400

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

	Year 2			Year 1
Assets
Cash	$	117,300		$	59,700
Accounts receivable		262,000			129,000
Inventory		320,000			288,000
Prepaid expenses		10,000			20,000
Total current assets		709,300			496,700
Property, plant, and equipment		635,000			520,000
Less accumulated depreciation		165,100			131,900
Net property, plant, and equipment		469,900			388,100
Loan to Hymans Company		47,000			0
Total assets	$	1,226,200		$	884,800
Liabilities and Stockholders' Equity
Accounts payable	$	317,000		$	254,000
Accrued liabilities		49,000			60,000
Income taxes payable		85,900			80,800
Total current liabilities		451,900			394,800
Bonds payable		204,000			105,000
Total liabilities		655,900			499,800
Common stock		341,000			289,000
Retained earnings		229,300			96,000
Total stockholders' equity		570,300			385,000
Total liabilities and stockholders' equity	$	1,226,200		$	884,800

Equipment that had cost $30,900 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $27,200. 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.