Joyner Companys income statement for Year 2 follows:

Sales	$ 708,000
Cost of goods sold	301,000
Gross margin	407,000
Selling and administrative expenses	151,600
Net operating income	255,400
Nonoperating items:
Gain on sale of equipment	5,000
Income before taxes	260,400
Income taxes	78,120
Net income	$ 182,280

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

	Year 2	Year 1
Assets
Cash	$ 170,480	$ 65,100
Accounts receivable	223,000	147,000
Inventory	319,000	285,000
Prepaid expenses	9,500	19,000
Total current assets	721,980	516,100
Property, plant, and equipment	640,000	506,000
Less accumulated depreciation	165,800	131,500
Net property, plant, and equipment	474,200	374,500
Loan to Hymans Company	41,000	0
Total assets	$ 1,237,180	$ 890,600
Liabilities and Stockholders' Equity
Accounts payable	$ 313,000	$ 264,000
Accrued liabilities	47,000	53,000
Income taxes payable	85,900	81,600
Total current liabilities	445,900	398,600
Bonds payable	206,000	119,000
Total liabilities	651,900	517,600
Common stock	337,000	276,000
Retained earnings	248,280	97,000
Total stockholders' equity	585,280	373,000
Total liabilities and stockholders' equity	$ 1,237,180	$ 890,600

Equipment that had cost $31,000 and on which there was accumulated depreciation of $10,700 was sold during Year 2 for $25,300. 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. Using the indirect method, compute the net cash provided by/used in operating activities for Year 2.

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 FlowsIndirect Method (partial)

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

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

3. Compute the free cash flow for Year 2