Joyner Companys income statement for Year 2 follows: Sales $ 703,000 Cost of goods sold 304,000 Gross margin 399,000 Selling and administrative expenses 151,000 Net operating income 248,000 Nonoperating items: Gain on sale of equipment 6,000 Income before taxes 254,000 Income taxes 76,200 Net income $ 177,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 156,300 $ 49,600 Accounts receivable 226,000 138,000 Inventory 320,000 288,000 Prepaid expenses 8,500 17,000 Total current assets 710,800 492,600 Property, plant, and equipment 633,000 511,000 Less accumulated depreciation 166,800 130,700 Net property, plant, and equipment 466,200 380,300 Loan to Hymans Company 43,000 0 Total assets $ 1,220,000 $ 872,900 Liabilities and Stockholders' Equity Accounts payable $ 315,000 $ 265,000 Accrued liabilities 40,000 51,000 Income taxes payable 84,900 81,900 Total current liabilities 439,900 397,900 Bonds payable 210,000 104,000 Total liabilities 649,900 501,900 Common stock 335,000 282,000 Retained earnings 235,100 89,000 Total stockholders' equity 570,100 371,000 Total liabilities and stockholders' equity $ 1,220,000 $ 872,900 Equipment that had cost $31,000 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $25,400. 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.