Joyner Companys income statement for Year 2 follows:

Sales	$ 710,000
Cost of goods sold	398,000
Gross margin	312,000
Selling and administrative expenses	151,900
Net operating income	160,100
Nonoperating items:
Gain on sale of equipment	7,000
Income before taxes	167,100
Income taxes	66,840
Net income	$ 100,260

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

	Year 2	Year 1
Assets
Cash	$ 99,460	$ 66,000
Accounts receivable	220,000	121,000
Inventory	319,000	285,000
Prepaid expenses	10,500	21,000
Total current assets	648,960	493,000
Property, plant, and equipment	627,000	509,000
Less accumulated depreciation	166,500	131,300
Net property, plant, and equipment	460,500	377,700
Loan to Hymans Company	47,000	0
Total assets	$ 1,156,460	$ 870,700
Liabilities and Stockholders' Equity
Accounts payable	$ 312,000	$ 257,000
Accrued liabilities	48,000	55,000
Income taxes payable	85,800	80,700
Total current liabilities	445,800	392,700
Bonds payable	204,000	105,000
Total liabilities	649,800	497,700
Common stock	347,000	279,000
Retained earnings	159,660	94,000
Total stockholders' equity	506,660	373,000
Total liabilities and stockholders' equity	$ 1,156,460	$ 870,700

Equipment that had cost $30,500 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $26,800. 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.

Joyner Company
Statement of Cash FlowsIndirect Method (partial)
??
		0
		$0

2. Prepare a statement of cash flows for Year 2.

Joyner Company
Statement of Cash Flows
For Year 2
Operating activities:
Investing activities:
		0
Financing activities:
		0
		0
Beginning cash and cash equivalents
Ending cash and cash equivalents		$0

3. Compute the free cash flow for Year 2