Joyner Companys income statement for Year 2 follows:

Sales	$	714,000
Cost of goods sold		365,000
Gross margin		349,000
Selling and administrative expenses		217,000
Net operating income		132,000
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		141,000
Income taxes		56,400
Net income	$	84,600

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

	Year 2			Year 1
Assets
Cash	$	33,400		$	81,600
Accounts receivable		262,000			110,000
Inventory		319,000			276,000
Prepaid expenses		9,000			18,000
Total current assets		623,400			485,600
Property, plant, and equipment		625,000			518,000
Less accumulated depreciation		165,300			130,800
Net property, plant, and equipment		459,700			387,200
Loan to Hymans Company		44,000			0
Total assets	$	1,127,100		$	872,800
Liabilities and Stockholders' Equity
Accounts payable	$	314,000		$	251,000
Accrued liabilities		46,000			53,000
Income taxes payable		84,600			80,800
Total current liabilities		444,600			384,800
Bonds payable		202,000			116,000
Total liabilities		646,600			500,800
Common stock		339,000			283,000
Retained earnings		141,500			89,000
Total stockholders' equity		480,500			372,000
Total liabilities and stockholders' equity	$	1,127,100		$	872,800

Equipment that had cost $31,500 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $28,600. 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.)