Joyner Companys income statement for Year 2 follows:

Sales	$	703,000
Cost of goods sold		48,000
Gross margin		655,000
Selling and administrative expenses		218,000
Net operating income		437,000
Gain on sale of equipment		7,000
Income before taxes		444,000
Income taxes		177,600
Net income	$	266,400

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

	Year 2		Year 1
Assets
Cash	$	192,500	$	85,600
Accounts receivable		274,000		126,000
Inventory		319,000		271,000
Prepaid expenses		10,500		21,000
Total current assets		796,000		503,600
Property, plant, and equipment		625,000		515,000
Less accumulated depreciation		166,000		131,900
Net property, plant, and equipment		459,000		383,100
Loan to Hymans Company		43,000		0
Total assets	$	1,298,000	$	886,700
Liabilities and Stockholders' Equity
Accounts payable	$	311,000	$	262,000
Accrued liabilities		44,000		59,000
Income taxes payable		85,700		81,700
Total current liabilities		440,700		402,700
Bonds payable		190,000		108,000
Total liabilities		630,700		510,700
Common stock		338,000		279,000
Retained earnings		329,300		97,000
Total stockholders' equity		667,300		376,000
Total liabilities and stockholders' equity	$	1,298,000	$	886,700

Equipment that had cost $30,400 and on which there was accumulated depreciation of $10,800 was sold during Year 2 for $26,600. 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.)

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