Joyner Companys income statement for Year 2 follows:

Sales	$ 915,000
Cost of goods sold	503,250
Gross margin	411,750
Selling and administrative expenses	330,000
Net operating income	81,750
Nonoperating items:
Gain on sale of equipment	8,000
Income before taxes	89,750
Income taxes	26,925
Net income	$ 62,825

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

	Year 2	Year 1
Assets
Cash	$ -38,925	$ -18,200
Accounts receivable	248,000	173,000
Inventory	312,000	262,000
Prepaid expenses	8,500	17,000
Total current assets	529,575	433,800
Property, plant, and equipment	515,000	416,000
Less accumulated depreciation	128,750	124,800
Net property, plant, and equipment	386,250	291,200
Loan to Hymans Company	44,000	0
Total assets	$ 959,825	$ 725,000
Liabilities and Stockholders' Equity
Accounts payable	$ 307,000	$ 255,000
Accrued liabilities	23,000	32,000
Income taxes payable	43,000	44,000
Total current liabilities	373,000	331,000
Bonds payable	188,000	66,000
Total liabilities	561,000	397,000
Common stock	285,000	245,000
Retained earnings	113,825	83,000
Total stockholders' equity	398,825	328,000
Total liabilities and stockholders' equity	$ 959,825	$ 725,000

Equipment that had cost $38,000 and on which there was accumulated depreciation of $33,000 was sold during Year 2 for $13,000. 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.