Joyner Companys income statement for Year 2 follows:

Sales	$	710,000
Cost of goods sold		144,000
Gross margin		566,000
Selling and administrative expenses		150,200
Net operating income		415,800
Nonoperating items:
Gain on sale of equipment		6,000
Income before taxes		421,800
Income taxes		126,540
Net income	$	295,260

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

	Year 2			Year 1
Assets
Cash and cash equivalents	$	283,660		$	39,400
Accounts receivable		228,000			147,000
Inventory		318,000			290,000
Prepaid expenses		10,000			20,000
Total current assets		839,660			496,400
Property, plant, and equipment		627,000			510,000
Less accumulated depreciation		166,100			130,600
Net property, plant, and equipment		460,900			379,400
Loan to Hymans Company		46,000			0
Total assets	$	1,346,560		$	875,800
Liabilities and Stockholders' Equity
Accounts payable	$	313,000		$	262,000
Accrued liabilities		42,000			51,000
Income taxes payable		84,300			81,800
Total current liabilities		439,300			394,800
Bonds payable		203,000			110,000
Total liabilities		642,300			504,800
Common stock		347,000			278,000
Retained earnings		357,260			93,000
Total stockholders' equity		704,260			371,000
Total liabilities and stockholders' equity	$	1,346,560		$	875,800

Equipment that had cost $30,200 and on which there was accumulated depreciation of $10,400 was sold during Year 2 for $25,800. 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.

Required 1 Required 2 Required 3 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.) Joyner Company Statement of Cash FlowsIndirect Method (partial) $ 0 Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Required 1 Required 2 Required 3 Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow