Joyner Companys income statement for Year 2 follows:

Sales	$	706,000
Cost of goods sold		340,000
Gross margin		366,000
Selling and administrative expenses		150,100
Net operating income		215,900
Nonoperating items:
Gain on sale of equipment		6,000
Income before taxes		221,900
Income taxes		66,570
Net income	$	155,330

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

	Year 2			Year 1
Assets
Cash and cash equivalents	$	122,430		$	63,800
Accounts receivable		226,000			146,000
Inventory		319,000			278,000
Prepaid expenses		9,000			18,000
Total current assets		676,430			505,800
Property, plant, and equipment		636,000			507,000
Less accumulated depreciation		165,600			130,100
Net property, plant, and equipment		470,400			376,900
Loan to Hymans Company		45,000			0
Total assets	$	1,191,830		$	882,700
Liabilities and Stockholders' Equity
Accounts payable	$	316,000		$	268,000
Accrued liabilities		41,000			56,000
Income taxes payable		85,100			81,700
Total current liabilities		442,100			405,700
Bonds payable		196,000			101,000
Total liabilities		638,100			506,700
Common stock		333,000			280,000
Retained earnings		220,730			96,000
Total stockholders' equity		553,730			376,000
Total liabilities and stockholders' equity	$	1,191,830		$	882,700

Equipment that had cost $31,200 and on which there was accumulated depreciation of $10,300 was sold during Year 2 for $26,900. 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.