Joyner Companys income statement for Year 2 follows:

Sales	$	707,000
Cost of goods sold		363,000
Gross margin		344,000
Selling and administrative expenses		150,300
Net operating income		193,700
Nonoperating items:
Gain on sale of equipment		9,000
Income before taxes		202,700
Income taxes		81,080
Net income	$	121,620

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

	Year 2			Year 1
Assets
Cash	$	96,220		$	77,300
Accounts receivable		221,000			118,000
Inventory		319,000			280,000
Prepaid expenses		8,500			17,000
Total current assets		644,720			492,300
Property, plant, and equipment		635,000			519,000
Less accumulated depreciation		166,100			130,400
Net property, plant, and equipment		468,900			388,600
Loan to Hymans Company		49,000			0
Total assets	$	1,162,620		$	880,900
Liabilities and Stockholders' Equity
Accounts payable	$	314,000		$	254,000
Accrued liabilities		41,000			53,000
Income taxes payable		85,900			80,900
Total current liabilities		440,900			387,900
Bonds payable		208,000			112,000
Total liabilities		648,900			499,900
Common stock		332,000			286,000
Retained earnings		181,720			95,000
Total stockholders' equity		513,720			381,000
Total liabilities and stockholders' equity	$	1,162,620		$	880,900

Equipment that had cost $30,400 and on which there was accumulated depreciation of $10,600 was sold during Year 2 for $28,800. 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.

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

3. Compute the free cash flow for Year 2.