Joyner Companys income statement for Year 2 follows:

Sales	$	701,000
Cost of goods sold		398,000
Gross margin		303,000
Selling and administrative expenses		152,000
Net operating income		151,000
Nonoperating items:
Gain on sale of equipment		7,000
Income before taxes		158,000
Income taxes		47,400
Net income	$	110,600

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

	Year 2			Year 1
Assets
Cash	$	63,800		$	80,800
Accounts receivable		257,000			132,000
Inventory		320,000			279,000
Prepaid expenses		8,500			17,000
Total current assets		649,300			508,800
Property, plant, and equipment		634,000			517,000
Less accumulated depreciation		165,400			130,600
Net property, plant, and equipment		468,600			386,400
Loan to Hymans Company		44,000			0
Total assets	$	1,161,900		$	895,200
Liabilities and Stockholders' Equity
Accounts payable	$	319,000		$	268,000
Accrued liabilities		41,000			56,000
Income taxes payable		84,500			81,200
Total current liabilities		444,500			405,200
Bonds payable		209,000			118,000
Total liabilities		653,500			523,200
Common stock		338,000			281,000
Retained earnings		170,400			91,000
Total stockholders' equity		508,400			372,000
Total liabilities and stockholders' equity	$	1,161,900		$	895,200

Equipment that had cost $30,400 and on which there was accumulated depreciation of $11,300 was sold during Year 2 for $26,100. 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.