Joyner Companys income statement for Year 2 follows:

Sales	$	702,000
Cost of goods sold		104,000
Gross margin		598,000
Selling and administrative expenses		218,000
Net operating income		380,000
Nonoperating items:
Gain on sale of equipment		8,000
Income before taxes		388,000
Income taxes		116,400
Net income	$	271,600

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

	Year 2			Year 1
Assets
Cash	$	207,400		$	118,000
Accounts receivable		270,000			116,000
Inventory		319,000			275,000
Prepaid expenses		9,500			19,000
Total current assets		805,900			528,000
Property, plant, and equipment		626,000			501,000
Less accumulated depreciation		166,100			131,500
Net property, plant, and equipment		459,900			369,500
Loan to Hymans Company		50,000			0
Total assets	$	1,315,800		$	897,500
Liabilities and Stockholders' Equity
Accounts payable	$	311,000		$	268,000
Accrued liabilities		49,000			59,000
Income taxes payable		85,400			80,500
Total current liabilities		445,400			407,500
Bonds payable		203,000			113,000
Total liabilities		648,400			520,500
Common stock		331,000			280,000
Retained earnings		336,400			97,000
Total stockholders' equity		667,400			377,000
Total liabilities and stockholders' equity	$	1,315,800		$	897,500

Equipment that had cost $31,100 and on which there was accumulated depreciation of $11,800 was sold during Year 2 for $27,300. 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 Required 2 Required 3 Using the indirect method, compute the net cash provided by/used in operating activities for Year 2. (List any deduction in cash outflows as negative amounts.) Joyner Company Statement of Cash Flows-Indirect Method (partial) Prepare a statement of cash flows for Year 2. (List any deduction in cash and cash outflows as negative amounts.) Joyner Company Statement of Cash Flows For Year 2 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Compute the free cash flow for Year 2. (Negative amount should be indicated by a minus sign.) Free cash flow