Joyner Companys income statement for Year 2 follows:

Sales	$	716,000
Cost of goods sold		251,000
Gross margin		465,000
Selling and administrative expenses		151,100
Net operating income		313,900
Nonoperating items:
Gain on sale of equipment		10,000
Income before taxes		323,900
Income taxes		97,170
Net income	$	226,730

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

	Year 2			Year 1
Assets
Cash and cash equivalents	$	185,830		$	73,800
Accounts receivable		221,000			127,000
Inventory		319,000			281,000
Prepaid expenses		9,500			19,000
Total current assets		735,330			500,800
Property, plant, and equipment		639,000			503,000
Less accumulated depreciation		165,200			130,200
Net property, plant, and equipment		473,800			372,800
Loan to Hymans Company		47,000			0
Total assets	$	1,256,130		$	873,600
Liabilities and Stockholders' Equity
Accounts payable	$	316,000		$	259,000
Accrued liabilities		46,000			54,000
Income taxes payable		84,300			80,600
Total current liabilities		446,300			393,600
Bonds payable		195,000			101,000
Total liabilities		641,300			494,600
Common stock		334,000			290,000
Retained earnings		280,830			89,000
Total stockholders' equity		614,830			379,000
Total liabilities and stockholders' equity	$	1,256,130		$	873,600

Equipment that had cost $30,200 and on which there was accumulated depreciation of $11,000 was sold during Year 2 for $29,200. 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.

NOTE: All three requirements are part of a single question.

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 Flows-Indirect Method (partial) 0 0 Required 1 Required 2 Required 3 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: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 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