Joyner Companys income statement for Year 2 follows:

Sales	$	716,000
Cost of goods sold		342,000
Gross margin		374,000
Selling and administrative expenses		151,800
Net operating income		222,200
Nonoperating items:
Gain on sale of equipment		8,000
Income before taxes		230,200
Income taxes		69,060
Net income	$	161,140

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

	Year 2			Year 1
Assets
Cash	$	143,740		$	81,800
Accounts receivable		228,000			117,000
Inventory		319,000			281,000
Prepaid expenses		10,500			21,000
Total current assets		701,240			500,800
Property, plant, and equipment		637,000			508,000
Less accumulated depreciation		166,200			130,700
Net property, plant, and equipment		470,800			377,300
Loan to Hymans Company		46,000			0
Total assets	$	1,218,040		$	878,100
Liabilities and Stockholders' Equity
Accounts payable	$	316,000		$	257,000
Accrued liabilities		44,000			50,000
Income taxes payable		84,200			81,100
Total current liabilities		444,200			388,100
Bonds payable		206,000			116,000
Total liabilities		650,200			504,100
Common stock		341,000			276,000
Retained earnings		226,840			98,000
Total stockholders' equity		567,840			374,000
Total liabilities and stockholders' equity	$	1,218,040		$	878,100

Equipment that had cost $31,800 and on which there was accumulated depreciation of $11,600 was sold during Year 2 for $28,200. 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.

Statement of Cash Flows For This Year Ended December 31 Operating activities Investing activities Investing activities Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents (Required 1 Required 2 > Required 1 Required 2 Compute Carmono's free cash flow for this year. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places) Free cash flow