Joyner Companys income statement for Year 2 follows:

Sales	$ 910,000
Cost of goods sold	500,500
Gross margin	409,500
Selling and administrative expenses	330,000
Net operating income	79,500
Nonoperating items:
Gain on sale of equipment	7,000
Income before taxes	86,500
Income taxes	25,950
Net income	$ 60,550

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

	Year 2	Year 1
Assets
Cash	$ -46,500	$ -15,100
Accounts receivable	254,000	166,000
Inventory	310,000	257,000
Prepaid expenses	7,500	15,000
Total current assets	525,000	422,900
Property, plant, and equipment	505,000	413,000
Less accumulated depreciation	126,250	123,900
Net property, plant, and equipment	378,750	289,100
Loan to Hymans Company	39,000	0
Total assets	$ 942,750	$ 712,000
Liabilities and Stockholders' Equity
Accounts payable	$ 310,000	$ 251,000
Accrued liabilities	23,000	28,000
Income taxes payable	43,000	43,000
Total current liabilities	376,000	322,000
Bonds payable	180,000	65,000
Total liabilities	556,000	387,000
Common stock	280,000	245,000
Retained earnings	106,750	80,000
Total stockholders' equity	386,750	325,000
Total liabilities and stockholders' equity	$ 942,750	$ 712,000

Equipment that had cost $40,000 and on which there was accumulated depreciation of $28,000 was sold during Year 2 for $19,000. 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.