Joyner Companys income statement for Year 2 follows:

Sales	$	715,000
Cost of goods sold		232,000
Gross margin		483,000
Selling and administrative expenses		218,000
Net operating income		265,000
Gain on sale of equipment		7,000
Income before taxes		272,000
Income taxes		108,800
Net income	$	163,200

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

	Year 2	Year 1
Assets
Cash	$	93,700	$	76,000
Accounts receivable		270,000		132,000
Inventory		319,000		274,000
Prepaid expenses		10,000		20,000
Total current assets		692,700		502,000
Property, plant, and equipment		621,000		507,000
Less accumulated depreciation		166,500		130,200
Net property, plant, and equipment		454,500		376,800
Loan to Hymans Company		47,000		0
Total assets	$	1,194,200	$	878,800
Liabilities and Stockholders' Equity
Accounts payable	$	312,000	$	252,000
Accrued liabilities		47,000		57,000
Income taxes payable		85,600		81,800
Total current liabilities		444,600		390,800
Bonds payable		191,000		104,000
Total liabilities		635,600		494,800
Common stock		331,000		286,000
Retained earnings		227,600		98,000
Total stockholders' equity		558,600		384,000
Total liabilities and stockholders' equity	$	1,194,200	$	878,800

Equipment that had cost $30,400 and on which there was accumulated depreciation of $10,100 was sold during Year 2 for $27,300. 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 for operating activities for Year 2. (Negative amount should be indicated by a minus sign.)

2.	Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.)

3.	Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.)