Joyner Companys income statement for Year 2 follows:

Sales	$ 920,000
Cost of goods sold	506,000
Gross margin	414,000
Selling and administrative expenses	328,000
Net operating income	86,000
Nonoperating items:
Gain on sale of equipment	7,000
Income before taxes	93,000
Income taxes	27,900
Net income	$ 65,100

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

	Year 2	Year 1
Assets
Cash	$ -25,900	$ -7,700
Accounts receivable	248,000	168,000
Inventory	314,000	264,000
Prepaid expenses	7,000	14,000
Total current assets	543,100	438,300
Property, plant, and equipment	500,000	401,000
Less accumulated depreciation	125,000	120,300
Net property, plant, and equipment	375,000	280,700
Loan to Hymans Company	38,000	0
Total assets	$ 956,100	$ 719,000
Liabilities and Stockholders' Equity
Accounts payable	$ 308,000	$ 254,000
Accrued liabilities	20,000	26,000
Income taxes payable	50,000	43,000
Total current liabilities	378,000	323,000
Bonds payable	180,000	74,000
Total liabilities	558,000	397,000
Common stock	285,000	240,000
Retained earnings	113,100	82,000
Total stockholders' equity	398,100	322,000
Total liabilities and stockholders' equity	$ 956,100	$ 719,000

Equipment that had cost $41,000 and on which there was accumulated depreciation of $32,000 was sold during Year 2 for $16,000. 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.