Joyner Companys income statement for Year 2 follows:

Sales	$	701,000
Cost of goods sold		318,000
Gross margin		383,000
Selling and administrative expenses		216,000
Net operating income		167,000
Gain on sale of equipment		10,000
Income before taxes		177,000
Income taxes		53,100
Net income	$	123,900

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

	Year 2		Year 1
Assets
Cash	$	18,500	$	91,700
Accounts receivable		279,000		131,000
Inventory		319,000		278,000
Prepaid expenses		9,000		18,000
Total current assets		625,500		518,700
Property, plant, and equipment		638,000		511,000
Less accumulated depreciation		165,100		130,900
Net property, plant, and equipment		472,900		380,100
Loan to Hymans Company		48,000		0
Total assets	$	1,146,400	$	898,800
Liabilities and Stockholders' Equity
Accounts payable	$	313,000	$	269,000
Accrued liabilities		43,000		52,000
Income taxes payable		84,300		81,800
Total current liabilities		440,300		402,800
Bonds payable		191,000		120,000
Total liabilities		631,300		522,800
Common stock		333,000		284,000
Retained earnings		182,100		92,000
Total stockholders' equity		515,100		376,000
Total liabilities and stockholders' equity	$	1,146,400	$	898,800

Equipment that had cost $30,500 and on which there was accumulated depreciation of $10,500 was sold during Year 2 for $30,000. 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 for operating activities for Year 2. (Negative amount should be indicated by a minus sign.)

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

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