Joyner Companys income statement for Year 2 follows:

Sales	$ 707,000
Cost of goods sold	277,000
Gross margin	430,000
Selling and administrative expenses	150,700
Net operating income	279,300
Nonoperating items:
Gain on sale of equipment	7,000
Income before taxes	286,300
Income taxes	114,520
Net income	$ 171,780

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

	Year 2	Year 1
Assets
Cash	$ 140,780	$ 67,000
Accounts receivable	224,000	110,000
Inventory	318,000	282,000
Prepaid expenses	8,000	16,000
Total current assets	690,780	475,000
Property, plant, and equipment	639,000	519,000
Less accumulated depreciation	166,400	131,600
Net property, plant, and equipment	472,600	387,400
Loan to Hymans Company	42,000	0
Total assets	$ 1,205,380	$ 862,400
Liabilities and Stockholders' Equity
Accounts payable	$ 317,000	$ 253,000
Accrued liabilities	47,000	56,000
Income taxes payable	84,600	81,400
Total current liabilities	448,600	390,400
Bonds payable	191,000	102,000
Total liabilities	639,600	492,400
Common stock	335,000	279,000
Retained earnings	230,780	91,000
Total stockholders' equity	565,780	370,000
Total liabilities and stockholders' equity	$ 1,205,380	$ 862,400

Equipment that had cost $31,300 and on which there was accumulated depreciation of $11,900 was sold during Year 2 for $26,400. 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.

Joyner Company Statement of Cash Flows For Year 2 Operating activities: Net cash provided by operating activities Investing activities: Proceeds from sale of equipment Loan to Hymans Company Additions to property, plant, and equipment 0 0 Financing activities: Issuance of bonds payable Issuance of common stock Cash dividends paid 0 0 Net cash provided by financing activities Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 Complete this question by entering your answers in the tabs below. 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