Joyner Companys income statement for Year 2 follows: Sales $ 711,000 Cost of goods sold 196,000 Gross margin 515,000 Selling and administrative expenses 218,000 Net operating income 297,000 Nonoperating items: Gain on sale of equipment 7,000 Income before taxes 304,000 Income taxes 91,200 Net income $ 212,800 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Year 2 Year 1 Assets Cash $ 136,300 $ 84,100 Accounts receivable 277,000 111,000 Inventory 319,000 286,000 Prepaid expenses 10,500 21,000 Total current assets 742,800 502,100 Property, plant, and equipment 627,000 505,000 Less accumulated depreciation 165,400 131,800 Net property, plant, and equipment 461,600 373,200 Loan to Hymans Company 48,000 0 Total assets $ 1,252,400 $ 875,300 Liabilities and Stockholders' Equity Accounts payable $ 318,000 $ 253,000 Accrued liabilities 43,000 58,000 Income taxes payable 85,300 80,300 Total current liabilities 446,300 391,300 Bonds payable 200,000 103,000 Total liabilities 646,300 494,300 Common stock 334,000 290,000 Retained earnings 272,100 91,000 Total stockholders' equity 606,100 381,000 Total liabilities and stockholders' equity $ 1,252,400 $ 875,300 Equipment that had cost $30,700 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $27,000. 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.