Joyner Companys income statement for Year 2 follows:

Sales	$	715,000
Cost of goods sold		306,000
Gross margin		409,000
Selling and administrative expenses		150,600
Net operating income		258,400
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		267,400
Income taxes		80,220
Net income	$	187,180

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

	Year 2			Year 1
Assets
Cash	$	123,780		$	70,000
Accounts receivable		274,000			120,000
Inventory		319,000			286,000
Prepaid expenses		9,500			19,000
Total current assets		726,280			495,000
Property, plant, and equipment		627,000			503,000
Less accumulated depreciation		166,700			131,400
Net property, plant, and equipment		460,300			371,600
Loan to Hymans Company		41,000			0
Total assets	$	1,227,580		$	866,600
Liabilities and Stockholders' Equity
Accounts payable	$	312,000		$	251,000
Accrued liabilities		48,000			54,000
Income taxes payable		85,200			81,600
Total current liabilities		445,200			386,600
Bonds payable		190,000			102,000
Total liabilities		635,200			488,600
Common stock		348,000			287,000
Retained earnings		244,380			91,000
Total stockholders' equity		592,380			378,000
Total liabilities and stockholders' equity	$	1,227,580		$	866,600

Equipment that had cost $31,700 and on which there was accumulated depreciation of $11,700 was sold during Year 2 for $29,000. 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 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.